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A HISTORY

OF THE

BANK OF NORTH AMERICA,

THE FIRST BANK CHARTERED IN THE
UNITED STATES.

PREPARED AT THE REQUEST OF THE PRESIDENT AND DIRECTORS, BY

LAWRENCE LEWIS, Jr.

//

PHILADELP H I A :

J. B. LIPPINCOTT & CO.
1 8 8 2.

I

»

PREFACE.

The occurrence of the centennial anniversary of the in¬
corporation of the Bank of North America affords a fitting
opportunity to present to the jmblic an historical sketch of
the origin and career of that venerable institution.

Unlike most of the hanks in this country, its early annals
abound in interesting features. It was the first bank char¬
tered in the United States. Organized at a very critical
period of the Revolution, almost wholly from a patriotic
desire to sustain the feeble credit of Congress, its first trans¬
actions are most intimately connected with the financial
operations of the National Government. By its aid troops
were levied, arms and ammunition obtained, supplies fur¬
nished to the patriot army, and the expenses of the various
departments of Government defrayed. Some of the most
prominent financiers of Revolutionary times were numbered
among its directors or supporters. Nor were these the only
distinguishing features which marked its early career. The
granting of its charter by Congress first raised the question
as to the existence of implied powers in that body. The
annulling of its State franchises by the vote of the Assembly

4

PREFA CE.

induced the first discussion as to the capacity of a legislative
body to take such action. While the propriety of encour¬
aging or prohibiting the system of banking in this country
was first mooted in connection with its operations.

All these subjects will be found treated of at some length
in the following pages.

The later history of the bank presents fewer points of
interest to the general reader. To give an adequate idea
of the scope and character of its operations the financial
history of the nation would have to be passed in review, a
gigantic task which yet remains to be performed, and which
is, of course, quite beyond the limits of the present under¬
taking. N o more lias,, therefore, been attempted than to
sketch in rough outline those events in the history of the
institution which seem best calculated to illustrate the prin¬
ciples and policy by which it has been constantly guided.

In some of the important financial crises through which
this nation has passed, the Bank of North America has
adopted a course diametrically opposed to that pursued by
most of the banking institutions of the country. As a rule,
the wisdom of the counsels by which it was guided has been
fully justified by the event. Of this no better proof can be
required than its great and constant prosperity. During the
century of its existence it has never passed its semi-annual
dividend, except upon five occasions, and then only during
a panic unexampled in its magnitude and in the disastrous
effects it produced upon the community.

Other features in the later history of the bank have
seemed worthy of note. The terms of its various charters,

PREFA CE.

the election and resignation of its presidents, the mode and
extent of the assistance afforded by it to the United States
Government during the Rebellion, such are some of the
topics which, though they may prove dull to the general
reader, will be, it is hoped, of some interest to those con¬
cerned in the institution.

In the Appendix will be found an accurate list of the
officers of the bank, chronologically arranged. This has
been carefully compiled from the original archives in the
bank’s possession. To this have been added such documents
connected with the history of the institution as it is believed
will best illustrate the text of the narrative.

L. L, Jr.

December, 1881.

2

CONTENTS.

PAGE

Preface . . . 3

CHAPTER I.

1763-1780.

Early Views as to Banking in the United States— Review of the Finan¬
cial Policy of the American Revolution— Hamilton’s Scheme for a
National Bank — Financial Condition of the Country in 1780 — Organ¬
ization of the Pennsylvania Bank in June, 1780 — Character and
Extent of its Operations — Its Dissolution . 13

CHAPTER II.

1781.

Financial Condition of the Country in 1781— Ratification of the Articles
of Confederation in March, 1781 — -Appointment of Robert Morris
as Superintendent of Finance in February, 1781— Morris’s Plan for
a National Bank— Action of Congress in Reference thereto— Reasons
for establishing a National Bank— The Subscriptions to the Under¬
taking— The Organization of the Bank of North America in No¬
vember, 1781— Thomas Willing elected President— The Ordinance of
Incorporation passed by Congress December 31, 1781

24

8

CONTENTS.

CHAPTER III.

1782-1784.

The Bank of North America begins its Operations on January 7, 1782-
Circular Letter of the Superintendent of Finance announcing this
Fact to the Governors of the various States — Early Difficulties expe¬
rienced by the Bank — Stories relating to it circulated by its Enemies
— Rapid Success of the Institution — Recognition of its Existence by
Connecticut, Rhode Island, and Massachusetts in January and March,

1782 — A Charter granted to it by the Assembly of Pennsylvania on
March 26, 1782 — Opposition to Mr. Willing on Account of alleged
Disloyalty — Assistance afforded by the Bank to the National Gov¬
ernment — Assistance afforded by it to the State of Pennsylvania —
Assistance afforded by it to the City of Philadelphia — Proposed
Establishment of the Bank of Pennsylvania in 1784 — Abandonment
of the Scheme in Consequence of the Increase in the Capital Stock
of the Bank of North America — Subscriptions to the New Stock . . 37

CHAPTER IY.

1785-1788.

Pennsylvania Paper Currency — Popular Demand for the issuing thereof
in 1785 — Attitude of the Bank of North America adverse to the
Scheme — Growing Unpopularity of the Bank — Petitions presented
to the Assembly praying for a Repeal of its Charter — Arguments
for and against the Bank — The State Charter annulled on September
13, 1785 — Views of the Directors as to this Action — Continuance of
the Bank’s Operations — A Charter granted to the Bank by the State
of Delaware on February 2, 1786 — Attempts to obtain a Repeal of
the Annulling Act — A New Charter granted by the State of Penn¬
sylvania on March 17, 1787 — Provisions of the Charter — Prosperity
of the Institution — Establishment of other Banks .

54

CONTENTS.

9

CHAPTER Y.

1789-1809.

PAGE

The Constitution of the United States goes into effect in March, 1789 —
Hamilton’s Treasury Report of 1790 — Reasons for the Establishment
of the Bank of the United States — The Bank of North America
unable and unwilling to discharge the Functions of such an Institu¬
tion — Resignation of Thomas Willing as President in 1792 — Election
of John Nixon as President — Business of the Bank in 1792 — Estab¬
lishment of the Bank of Pennsylvania in 1793 — -The Whiskey Insur¬
rection of 1794 — Business of the Bank in 1794 and 1795 — The Yellow
Fever of 1798 — Temporary Removal of the Bank to Germantown —
Renewal of the Charter in 1799 — Increase in the Number of Banking
Institutions — Reform in the Bank’s Method of transacting Business
effected in 1806 — Establishment of the Surplus Fund in 1809 — Death
of John Nixon and Election of John Morton as President in 1809 . 75

CHAPTER VI.

1810-1846-

Expiration of the Charter of the First Bank of the United States — The
Bank of North America Petitions Congress for the Renewal in 1810 —
Failure to obtain a Renewal from Congress — -The War of 1812 —
Assistance afforded by the Bank to the Government during the War
— The Panic of 1814 — Policy of the Bank during the Panic — Renewal
of the Bank’s Charter in 1814 — Establishment of the Second Bank
of the United States — End of the Panic in 1817 — Resignation of John
Morton from the Presidency in 1822 and Election of Henry Nixon
in his place — Renewal of the Charter in 1825 — Terms of the New
Charter — Sale of the Bank Shares in 1825 — Efforts to obtain a Re¬
newal of the Charter of the Second Bank of the United States in
1832 — Attitude of the Bank of North America — Failure of the Efforts
— Change in the Method of Transacting the Bank’s Business between

JO

CONTENTS.

1830 and 1835 — The Congressional Charter Null and Void — Failure
of Efforts to obtain an Increase of the Capital Stock in 1835 — The
Panic of 1837 — Suspension of Specie Payments — Policy of the Bank
of North America— Death of Henry Nixon in 1840, and Election of
John Richardson as President — Resumption of Specie Payments in
January, 1841 — Failure of the Bank of the United States in Feb¬
ruary, 1841 — Renewed Suspension of Specie Payments — The “ Relief
Act” of May 4, 1841 — Refusal of the Bank of North America to
accept its Terms — Views of the Bank as to Resumption — Resumption
effected in March, 1842 — Dangerous Position of the Bank in 1842 —
Reduction of its Capital in 1843 — Restoration of the Capital to its
old Volume in 1845 — Renewal of the Charter in 1846 — Provisions of
the New Charter . 86

CHAPTER VII.

1847-1882.

Erection of the present Banking-House in 1847 — Renewal of the Charter
in 1855 — The Panic of 1857 — Resignation of John Richardson from
the Presidency in 1857 — Election of James N. Dickson, and his
Resignation in 1860 — Election of Thomas Smith as President — The
War of the Rebellion — Assistance afforded to the Government by the
Bank from 1861 to 1864 — -Loyalty of the Bank — Its Reorganization as
a National Bank in 1864 — Retention of its Old Title without the usual
Prefix “ National” — Conclusion . 110

APPENDIX.

List of the Presidents, Cashiers, and Directors of the Bank of North

America . 119

Plan of the Bank of North America submitted to Congress May 17, 1781 . 127

An Ordinance to Incorporate the Subscribers to the Bank of North Amer¬
ica, passed by Congress December 31, 1781 . 130

CONTENTS.

11

Alphabetical List of the First Subscribers to the Bank of North America
Second Subscription to the Bank of North America authorized January

12, 1784 .

Second Subscription to the Bank of North America continued and ex¬
tended on March 1, 1784 .

Correspondence between the Comptroller of the Currency and the Presi¬
dent of the Bauk in 1864, relative to the Retention by the Bank of its

Old Title on becoming a National Bank .

Dividends paid by the Bank of North America from 1782 to the Present
Time .

I

\

PA OK

133

136

140

148

152

LIST OF ILLUSTRATIONS.

PAGE

Portrait of Robert Morris . Frontispiece.

Portrait of Thomas Willing . 34

Fac-similes of Bank Notes 1789 and 1815 . 75

Portrait of John Nixon . 80

Fac-similes of Bank Notes 179 and 1826 . 82

Portrait of John Morton . 85

Portrait of Henry Nixon . 90

Portrait of John Richardson . 97

Portrait of James N. Dickson . 113

Fac-similes of Bank Notes 1862 and 1864 . 115

Portrait of Thomas Smith . 118

A HISTORY

OF

THE BANK OF NORTH AMERICA.

CHAPTER I.

1763-1780.

Early A^iews as to Banking in the United States — Review of the
Financial Policy of the American Revolution— Hamilton’s
Scheme for a National Bank — Financial Condition of the
Country in 1780— Organization of the Pennsylvania Bank in
June, 1780— Character and Extent of its Operations— Its Dis¬
solution.

The system of banking lias taken its rise in this
country within comparatively recent times. In
early colonial days the Provincial Governments
were carried on with too much economy and sim¬
plicity to require the aid of banking capital. Nor
were the demands of the business world more
pressing. Merchants could generally furnish each
other with the loans and discounts necessary to
carry on their affairs. A convenient circulating-

14

A HISTORY OF

1763

Gouge’s His¬
tory of Bank¬
ing and
Paper
Money, 34.
Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension
of the Act
annulling
the Charter
of the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

178G, 37.

1775

medium was afforded by bills of credit issued from
loan-offices conducted by the government, and
hypothecated upon real or personal security. To
this accommodation merchants occasionally had
resort when engaged in a venture of peculiar mag¬
nitude, but, as a rule, the assistance was unneces¬
sary. Commercial transactions had not yet reached
those prodigious proportions to which they have in
the present century attained.1

As early, however, as the year 1763 the in¬
creased business of the port of Philadelphia encour¬
aged some of its principal merchants, among them
Robert Morris, to entertain the design of establish¬
ing a bank. It was thought by them that such an
institution, if conducted upon proper principles,
would materially facilitate and increase the Amer¬
ican trade. , Negotiations were accordingly entered
into in Europe with a view to effect this object, and
although vigorously opposed by some on the ground
that it would give a few men a monopoly of trade,
the institution would no doubt have eventually
been established had it not been for the breaking-
out of the War of the Revolution.

An entirely new set of financial problems was

1 South Carolina is indeed said to have established a public bank in
the year 1712, from which £4800 in bills of credit were issued, called
bank-bills. This institution seems, however, to have been only the
ordinary colonial loan-office under another name. 2 Holmes, Am.
Ann., 82.

\

THE BANK OF NORTH AMERICA.

15

now presented to the American mind. Commerce, 1775
it is true, had almost perished. Storehouses were
empty, and ships were rotting at the cpiays. But
a national system of finance had become a neces¬
sity. A national government was to he supported,
and a national army to he raised, paid, fed, and
clothed.

The various schemes of Congress to this end
were badly planned and worse executed. It had
resort to paper money, to lotteries, and to loans
both foreign and domestic, but by the close of 1779 1779

had almost come to the end of its resources. Its
paper money had already depreciated to below
one-eighth of its par value, and was still rapidly
on the decline, its lotteries proved so many gigan¬
tic bubbles, disappointing alike to the government
and the adventurers, and its credit seemed far too
much exhausted to hope for further cash loans to
any large extent.

From these trying difficulties the genius of Alex¬
ander Hamilton conceived that the country might
be rescued by a plan similar to that already pro¬
posed by Morris for its commercial aggrandizement.

With characteristic energy he advised the imme¬
diate establishment of a vast banking institution,
to be known as “ The Company of the Bank of the
United States,” with a capital of two hundred mil¬
lions of dollars. He proposed that it should be
incorporated by Congress for a term of ten years,

16

A HISTORY OF

1779

1 Hamilton’s
Works, 116.

1780

Dissertations
on Govern¬
ment, the
Affairs of the
Bank, and
Paper
Money, by
Thos. Paine.
Philadel¬
phia, 1786,
17.

Ibid., 18.

and that its capital should he devoted largely to
relieving the government from its mortifying
fi nancial embarrassments.

The scheme, however, was of far too vast a
character to he put into practical shape. As far
as can be ascertained it elicited but meagre atten-
tion, and meantime the pecuniary condition of the
country went from bad to worse.

The spring of the year 1780 was perhaps the
most disastrous period of the American Revolu¬
tion. The credit of Congress, already stretched
to the very uttermost, had almost vanished. The
army was in great distress. Lack of food, clothes,
and pay engendered frequent and dangerous mu¬
tinies. “ The measures of government, from the
want of money, means, and credit, dragged on like a
heavy-loaded carriage without wheels.” To crown
all, the reliance that had been placed in the de¬
fences of Charleston now failed. The effect of its
anticipated loss on the spirits of the people was
greatly dreaded. Already bitter complaints were
being made to Congress of over-taxation. “ How
the public measures were to be carried on, the
country defended, and the army recruited, clothed,
fed, and paid . . . was a matter too gloomy to
look at.” Many who had before been most con¬
fident now declared that they despaired of a suc¬
cessful issue. Indeed, a general apathy and gloom
seemed to settle on the national cause.

THE BANK OF NORTH AMERICA.

17

It was under these distressing circumstances that
the first banking institution of the country sprang
into being. A number of patriotic gentlemen in
Philadelphia, who appreciated and deplored the
national distress, resolved that from their private
fortunes they would do something for the relief of
the government. Prominent among these were
Pobert Morris, Blair McClenachan, Thomas Wil¬
ling, John Nixon, James Wilson, George Clymer,
William Bingham, and a number of others whose
names are associated alike with the history of the
State and of the nation.

A meeting of citizens was accordingly called in
the Coffee-House on June 8, 1780, which was
largely attended, and it was then and there re¬
solved that a subscription should instantly be set
on foot “to be given in bounties to promote the
recruiting service of the United States.” The
subscriptions rolled up rapidly. Within nine
days there was raised no less a sum than four
hundred pounds in hard money and one hundred
and one thousand three hundred and sixty pounds
in Continental money.

While this subscription was going forward in¬
formation of the loss of Charleston arrived. A
few members of Congress, who had observed the
movement with interest, at once communicated to
the gentlemen who were at the head of it the in¬
creased distress and danger to which the country

1780

l

18

A HISTORY OF

1780

Dissertations
on Govern¬
ment, the
Affairs of
the Bank,
and Paper
Money, by
Thos. Paine.
Philadel¬
phia, 1786,
19 and 20.

was now subjected, and urged that their benevo¬
lent scheme for the national good should be pressed
beyond the limits originally intended. Accord¬
ingly, on June 17 another meeting was called of
the original subscribers and of such other gentle¬
men as chose to attend, in the City Tavern, and
it was resolved to abandon the original plan. In
its place, it was proposed to open a security sub¬
scription to the amount of three hundred thousand
pounds Pennsylvania currency in real money, the
subscribers to execute bonds to the amount of their
various subscriptions, and the whole amount to
form the capital of a bank, by the aid of which
it was proposed to supply and transport food to
the army. The plan found ready acceptance.
“ Whereas, in the present situation of public
affairs,” ran the heading of the subscription-list,
“ the greatest and most vigorous exertions are
necessary for the successful management of the
just and necessary war in which we are engaged
with Great Britain, we, the subscribers, deeply
impressed with the sentiments that on such an
occasion should govern us, in the prosecution of
a war on the event of which our own freedom
and that of our posterity, and the freedom and in¬
dependence of the United States, are all involved, —
hereby severally pledge our property and credit
for the several sums specified and mentioned after
our names, in order to support the credit of a bank

THE TANK OF NORTH AMERICA.

19

to be established for furnishing a supply of pro¬
visions for the armies of the United States.”

Within a few days the subscription-list was
completed. It embraced the names of all those
who had subscribed to the former undertaking
and of many others, ninety-two in all, who pledged
themselves for amounts which varied from one to
ten thousand pounds.1

1780

2 Hazard’s
Historical
Register, 2G0.

1 The following is the list of subscribers to the Pennsylvania Bank-
together with the various amounts contributed by them :

Joseph Reed . <£2,000

Robert Morris . 10,000

Blair McClenachan . 10,000

James "Wilson . 5,000

George Clymer . 5,000

William Bingham . 5,000

J. M. Nesbitt & Co . 5,000

Richard Peters . 5.000

Samuel Meredith . 5,000

James Mease . 5,000

Thomas Barclay . 5,000

Samuel Morris, Jr . 5,000

John Cox . 5,000

Robert L. Hooper, Jr . 5,000

Hugh Shiell . 5,000

Benjamin G. Eyre . 4,000

William Coats _ _ 4,000

Emanuel Eyre . 5,000

John Dunlap . 4,000

James Budden . 4,000

Cadwalader Morris . 2,500

Robert Bass . 2,000

Owen Biddle... . 2,000

John Gibson . 2,000

Michael Hillegas . £4,000

Charles Pettit . 2,000

John Mitchell . 2,000

Matthew Irwin . 5,000

Thomas Irwin . 5,000

John Philip de Haas . 5,000

Philip Moore . 5,000

Robert Knox . 2,000

Joseph Bullock . 2,000

John Nixon . 5.000

Erancis Gurney . 2,000

George Campbell . 2,000

William Lewis . 2,000

John Mease . 4,000

John Wharton . 2,000

Benjamin Rush . . 2,000

T. Lawrence . 2,000

Joseph Blewer . 2,000

John Pringle . 3,000

Bunner, Murray & Co . 0,000

Joseph Carson . 4,000

Matthew Clarkson . 2,000

William Hall . 2,000

John Patton . 2,000

20

A HISTORY OF

1780 An organization was at once effected under the
name of the “ Pennsylvania Bank.” The sub¬
scribers agreed to pay in ten per cent, of their sub¬
scriptions at once, and the residue from time to
time as it should he needed. Robert Morris, John
M. Nesbitt, Blair McClenachan, Samuel Miles, and

, , Cadwalader Morris were elected Inspectors ; John

2 Hazard’s

Historicai Nixon and George Clymer, Directors ; and Tench

Register, _ J ’ ’

25h Francis, Factor.

The directors were authorized to borrow money
on the credit of the hank for six months or for

Thomas Leiper . £4,000

Robert Bridges . . 5,000

B. Fuller . 2,000

B. Randolph . 2,000

Abraham Bickley . 2,000

George Meade & Co . 2,000

John Benezet . 5,000

John Donaldson . 2,000

Henry Hill . 5,000

John Morgan . 5,000

John Steinmetz . 2,000

Samuel Miles . 3,000

Samuel Mifflin . 5,000

Thomas Mifflin . 5,000

Andrew Hodge . 2,000

Thomas Willing . 5,000

Samuel Powel . 5,000

Charles Thomson . 3,000

Henry Keppele . 2,000

Francis C. Hassenclever... 2,000

Isaac Melcher . 2,000

Isaac Moses . 3,000

John Schaffer . £2,000

Alexander Tod . 2,000

John Purvianee . 2,000

Kean & Nichols . 4,000

John Wilcocks . 2,000

Samuel Ingles . 2,000

Jonathan Penrose . 2,000

Nathaniel Falconer . 2,000

James Caldwell . 2,000

Samuel Caldwell . 1,000

Samuel Penrose . 1,000

William Turnbull . 1,000

John Shee . 1,000

Benjamin Davis . 1,000

Sharp Delany . 1,000

Samuel Morris . 3,000

Andrew Doz . 1,000

Gerardus Clarkson . 2,000

Peter Whiteside . 1,000

Andrew Robeson . 1,000

Abraham Shoemaker . 2,000

Tench Francis . 5,000

THE BANK OF NORTH AMERICA.

21

less time, and to emit notes bearing interest at
the rate of six per cent. They were to apply all
money borrowed or received from Congress for
the sole purpose of purchasing provisions and rum
for the use of the Continental army, to transporta¬
tion, and to discharging the notes and expenses of
the bank. Congress was expected from time to
time to reimburse the bank for the amounts ex¬
pended, and when the whole amount laid out
should have been thus returned, the notes were
to be paid off and cancelled, the accounts settled,
and the bank wound up.

On June 21 Congress was officially advised of
the organization of the institution, and that it now
lacked only the recognition and co-operation of
that body. A committee was at once appointed
to confer with the subscribers, and so satisfactory
was its report that the following resolutions were
at once unanimously agreed to :

Resolved, That Congress entertain a high sense
of the liberal offer of the association to raise and
transport supplies, and that it accepts the same as
a distinguished proof of the patriotism of the sub¬
scribers; and

Resolved, That the faith of the United States be
pledged to the subscribers for their effectual reim¬
bursement in the premises, that bills of exchange
to the amount of £15,000 be deposited with the

bank, and that, if it should occasionally need

3

1780

Journal of
Congress,
June 21,
1780.

22

A HISTORY OF

1780

8 Smith’s
Laws, 386,
note.

assistance, Congress will advance as much of
the current funds as can he spared from other
services.

On July 17 the hank began its operations. It
was established on Front Street, two doors above
Walnut, and, if we may judge from the advertise¬
ments of the time, did a fair share of business.

“All persons who have already lent money,”
runs the notice in the papers of the day, “ are de¬
sired to apply for bank-notes, and the Directors
request the favor of those who may hereafter lodge
their cash in the bank that they would tie it up in
bundles of bills of one denomination, with labels,
their names indorsed, as the business will thereby be
done with less trouble and greater despatch.” The
bank hours were from nine in the morning until
noon, and again from three until live in the
afternoon.

For nearly a year and a half the Pennsylva¬
nia Bank remained open. The factor drew from
time to time on the directors for specie, for Penn¬
sylvania State money, or for Continental money,
as he had need. These sums he invested in flour,
beef, pork, sugar, coffee, salt, and other goods,
which he stored in large quantities, and from time
to time forwarded to the army. Three millions of
rations were provided in this way, besides three
hundred barrels of rum. It was thought that
these supplies could not have been obtained but

THE DANK OF NORTH AMERICA.

for the assistance of the bank, so that it was uni¬
versally esteemed as having been of most essential
service to the country.

The tenth and last instalment of the subscrip¬
tions was called in on November 15, 1780, and the
bank’s affairs finally wound up towards the close
of the year 1784.

OQ

1780

2 Hazard’s
Historical
Register,
257.

Pennsylva¬
nia Gazette,
December 29,
1784.

24

A HISTORY OF

CHAPTER II.

1781.

Financial Condition of the Country in 1781 — Ratification of the
Articles of Confederation in March, 1781 — Appointment of
Robert Morris as Superintendent of Finance in February,
1781 — Morris’s Plan for a National Bank — Action of Con¬
gress in Reference thereto — Reasons for establishing a Na¬
tional Bank — The Subscriptions to the Undertaking — The
Organization of the Bank of North America in November,
1781 — Thomas Willing elected President — The Ordinance of
Incorporation passed by Congress December 31, 1781.

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension
of the Law
annulling
the Charter
of the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

178G, 47.

The year 1781 opened with prospects which
were gloomy indeed to contemplate. In January
a large part of the American army quartered at
Morristown mutinied for lack of pay, declared
their intention of departing to their homes, and
were only restrained from carrying their threat
into execution by the personal influence and solici¬
tation of the commander-in-chief. Congress de¬
spaired of raising sufficient supplies. One delegate
from Virginia seriously proposed that General
Washington should be authorized to lay violent
hands upon all the provisions that could be found
within twenty miles of his camp. Members of the
Board of War declared they had not the means of
sending an express from Philadelphia to the army.

THE BANK OF NORTH AMERICA.

Continental money had fallen to about one per
cent, of its par value, and within four months of the
beginning of the year had begun altogether to lose
its purchasing power. “The Congress is finally
bankrupt,” said a Tory paper of May, 1781.
“ Last night a large body of the inhabitants, with
paper dollars in their hats by way of cockades,
paraded the streets of Philadelphia, carrying colors
Hying, with a dog tarred, and, instead of the usual
appendage and ornament of feathers, his back was
covered with the Congress paper dollars. . . . This
example was directly followed by the jailer, who
refused accepting the bills in purchase of a glass
of rum, and afterwards by the traders of the. city,
who shut up their shops, declining to sell any more
goods but for gold and silver.”

But as the year went on there was a decided
improvement in the complexion of public af¬
fairs.

On the 1st of March the Articles of Confedera¬
tion were finally ratified, and, however imperfect
in their structure, certainly established more defi¬
nite relations than had formerly existed among: the

t J Cj

States. By them all charges of war, and other ex¬
penses incurred for the common defence and safety,
were made payable out of a common treasury, and
Congress was given express power to borrow money
and emit bills of credit, all debts so contracted
being deemed a charge against the United States

25

1781

Rivington’s
Gazette, May
12, 1781.

26

A HISTORY OF

1781

Journal of
Congress,
February 20,
1781.

Letter, Alex¬
ander Ham¬
ilton to Rob¬
ert Morris,
April 30,
1781, 1 Ham¬
ilton’s
Works, 223.

for the payment of which they and the public faith
were pledged.

Hardly less important was the election by Con¬
gress ol Robert Morris as Superintendent of Fi¬
nance on the 20th of February, 1781. Wearied
at last by the endless mistakes and delays of the
boards and committees who had had the control
of the finances, Congress at last resolved to com¬
mit them to the management of a single responsi¬
ble head. It was universally conceded that they
had acted most wisely in preferring Morris to the
post. Full of energy and self-reliance, he was,
perhaps, by his business talents and mercantile
experience, better qualified than any man in Amer¬
ica to control and direct its financial affairs. He
thought no sacrifice too great to be made for the
service of his country. Possessed of a splendid
personal credit, he often racked it to the utter¬
most to carry on some favorite national j)roject.
He spared neither labor, time, nor thought, and,
whatever strictures may be made on his manage¬
ment of the national treasury, it must be confessed
that it was characterized by a consistency and
vigor which the country had not before witnessed.
Hamilton took an early occasion to congratulate
Morris on his appointment, and at once urged on
him the advisability of proposing the establishment
of a national bank. This, according to his views,
should have a capital of at least three millions of

THE BANK OF NORTH AMERICA.

2

dollars, and be carried on in close relations with
the national government.

Morris was the more ready to comply with this
suggestion because it coincided to a great degree
with his own convictions. He felt persuaded that
the establishment of a national bank could not but
be of great service both to the government and to
commerce, but he was unwilling to embark in an
undertaking of such magnitude as had been con¬
ceived by the daring mind of Hamilton. He drew
up, therefore, a scheme on a scale which lie felt to
be adequate to the national wants and certain to

t

secure popular approbation, and on the 17th of
May, 1781, presented to Congress his plan for the
establishment of the Bank of North America.

The details of this plan were sufficiently simple.
A subscription of four hundred thousand dollars
was to be raised, in shares of four hundred dollars
each, payable in gold or silver. Every subscriber
of five shares or upwards was to undertake to pay
one-half the sum on the day of his subscription
and the other half within three months of that
date. When the whole sum was made up, a sys¬
tematic organization was to be effected. Twelve
directors were to be chosen annually to regulate
the affairs oF the bank, none of whom were to re¬
ceive any compensation for their services except
by consent of the stockholders. These were in
turn annually to elect one of their number as jn-esi-

1781

28

A HISTORY OF

1781

Journal of
Congress,
May 17,
1781.

dent, and quarterly to elect two of their number as
inspectors, to control the affairs of the bank. The
shares were to be freely transferable, and the di¬
rectors were to be at liberty to open new subscrip¬
tions to the capital stock as often and upon such
terms as they should see proper. The bank was
to be distinctively a national institution. On every
evening, Sunday excepted, the inspectors were to
deliver to the Superintendent of Finance an accu¬
rate account of the day’s business, and it was un¬
derstood that at all times he should have full right
to examine into its affairs. Its bank-notes, pay¬
able on demand, were by law to be made receivable
for duties and taxes in every State in the Union,
and were to be deemed in the settlement of accounts
between the States and the United States as sjiecie.
Other regulations were to be made relating to the
conduct of its affairs, which, being of minor im¬
portance, need not here be recapitulated.

The matter was deemed by Congress of great
importance, and was at once referred to a special
committee of four, with instructions to report on
the feasibility of the scheme. This committee con¬
sisted of Witherspoon of New Jersey, Sullivan of
New Hampshire, M. Smith of Virginia, and Clymer
of Pennsylvania. On May 26 it reported in favor
of the adoption of the plan. Resolutions were at
once introduced in consonance with its recom¬
mendations, and a lively debate ensued. The

THE BANK OF NORTH AMERICA.

29

promoters of the bank used every argument which
a thorough belief in its usefulness could inspire.
Madison, on the contrary, was bitterly opposed.
He contended that Congress was quite overstep¬
ping its powers in pledging itself to establish a
banking institution, and there were others who
coincided with him in opinion.

When at length the vote was taken the resolu¬
tions were found to have been passed by a bare
majority only. New Hampshire, New Jersey,
Maryland, Virginia, North Carolina, South Caro¬
lina, and Georgia voted aye. Rhode Island and
Connecticut were insufficiently represented. Penn¬
sylvania was divided, Mr. T. Smith voting no and
Mr. Clymer voting aye. Massachusetts alone was
registered in the negative.

The following are the resolutions in question :

Resolved, That Congress do approve of the plan
for establishing a national bank in these United
States, submitted by Mr. Robert Morris the 17th
May, 1781, and that they will promote and sup¬
port the same by such ways and means from time
to time as may appear necessary for the institution
and consistent with the public good.

Resolved, That the subscribers to the said bank
shall be incorporated agreeably to the principles
and terms of the plan, under the name of the
President, Directors, and Company of the Bank
of North America, so soon as the subscription

1781

6 Bancroft’s
History of
the United
States (Cen¬
tennial Edi¬
tion), 463.

80

A HISTORY OF

1781

Journal of
Congress,
May 26,
1781.

shall he filled, the directors and president chosen,
and application made to Congress for that purpose
by the president and directors elected.

Resolved , That it be recommended to the several
States, by proper laws for that purpose, to provide
that no other Bank or Bankers shall be established
or permitted within the said States respectively
during the war.

Resolved, That the notes hereafter to be issued
by the said bank, payable on demand, shall be re¬
ceivable in payment of all taxes, duties, and debts
due, or that may become due and payable to the
United States.

Resolved, That Congress will recommend to the
several Legislatures to pass laws making it felony
without benefit of clergy, for any person to counter¬
feit bank-notes, or to pass such notes, knowing them
to be counterfeited; also making it felony with¬
out benefit of clergy, for any president, inspector,
director, officer, or servant of the bank to convert
any of the property, money, or credit of the said
bank to his own use, or in any other way to be
guilty of fraud or embezzlement, as officers or ser¬
vants of the bank.

The plan being approved by Congress, the Su¬
perintendent of Finance, on May 28, published it
to the world, accompanied by an address, in which
he set forth the necessity and prudence of the
measure. “To ask,” said he, “the end which it

THE BANK OF NORTH AMERICA.

31

is proposed to answer by this institution of a bank, 1781
is merely to call the public attention to the situation
of our affairs. A depreciating paper currency has
unhappily been the source of infinite private mis¬
chief, numberless frauds, and the greatest distress.

The national calamities have moved with an equal
pace, and the public credit has received the deepest
injury. This is a circumstance so unusual in a re¬
publican government that we may boldly affirm it
cannot continue a moment after the several Legis¬
latures have determined to take those vigorous and
effectual measures to which the public voice now
loudly commands their attention. In the mean
time the exigencies of the United States require
an anticipation of our revenue ; while, at the same
time, there is not such confidence established as
will call out, for that jmrpose, the funds of indi¬
vidual citizens. The use, then, of a bank is to aid
the government by their moneys and credit, for
which they will have every proper reward and
security, to gain from individuals that credit which
property, abilities, and integrity never failed to
command, to supply the loss of that paper money
which, becoming more and more useless, calls every
day more loudly for its final redemption, and to
give a new spring to commerce, in the moment
when, on the removal of all its restrictions, the Facts Ke-

specking the

citizens of America shall enjoy and possess that Bank of
freedom for which they contend.” ica, 4. Amcr

32

A HISTORY OF

1781

Letter,
Greene to
Morris, Au¬
gust 18, 1781.
Greene’s Life
of Greene,
vol. iii. p.

370.

Facts Ke-
specting the
Bank of
North Amer¬
ica, 7.

Bolles’ Fi¬
nancial His¬
tory of the
United
States, 273.

Dissertations
on Govern¬
ment, the
Affairs of the
Bank and
Paper
Money, by
Thos. Paine.
Philadel¬
phia, 1786,
20.

The subscriptions meanwhile mounted np slowly.
Morris sought, but for the most part in vain, to in¬
terest the citizens of other States in the enterprise.
In the South particularly he made strenuous efforts,
but few were found willing to embark in the under¬
taking. “ The prospect of profit Avas very remote,
the danger of a total loss of capital evident. The
country Avas engaged in an arduous and doubtful
conflict. If unsuccessful, the Avliole capital Avas
lost.”

Another serious disappointment about this time
occurred to the Superintendent of Finance. He
had, in establishing the bank, relied largely for
a supply of coin upon the Governor-General of
Havana, avIio Avas to have been repaid by annual
shipments of flour, guaranteed by the French
Crown. This negotiation, unfortunately, at the
critical moment broke down, and Morris found
himself unable to render the bank the expected aid.

In spite of all difficulties, however, the subscrip¬
tion-list began, by the fall of 1781, to present a
very respectable appearance. The gentlemen who
had been most prominent in the organization of the
Pennsylvania Bank became identified at once Avitli
the fortunes of the neAV institution. They readily
perceived that, if successful, it Avould render useless
the continuance of the old undertaking. They re¬
solved, therefore, at once to Avind up the latter’s
affairs, and in many instances transferred their

THE BANK OF NORTH AMERICA.

o->

<_)>>

subscriptions from its books into those of the Bank 1781
of North America.

Other citizens of Philadelphia and its neighbor¬
hood, and a few of other parts of the country, came
forward, and by October or November it was found
that there had been paid in cash about $70,000.

Considera¬
tions on the
Bank of
North Amer¬
ica. Phila¬
delphia,

1785, 5.

About this time a French frigate arrived in Bos¬
ton, bringing to the national treasury a most op¬
portune remittance of about $470,000 in specie.
This sum was immediately brought to Philadel¬
phia and lodged in the vaults of the bank ; and so
assured did the stockholders now feel of ultimate
success in their undertaking that they resolved at
once to take steps for organization.

On November 1, 1781, a meeting was convened
at the City Tavern.1 A number of the same

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Kepeal or
Suspension
of the Law
annulling
the Charter
of the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

1780, 48.

1 At this meeting the following
Gouv’r Morris.

James Crawford.

Chas. Pettit.

Michael Hillegas.

Samuel Osgood.

B. Fuller.

Samuel Meredith,

for George Clymer.
Vm. Turnbull.

John Wilcocks.

Jno. Mitchell.

Samuel Meredith.

Mease & Caldwell.

John Donnaldson.

Of these, all but nine, indicated
Pennsylvania Bank.

persons were present :

James Wilson.

John Nixon.

Timothy Matlack.

Andw. & James Caldwell.
Robt. Morris.

Francis Gurney.

Geo. Meade & Co.

Thos. Fitzsimons.

Thos. Fitzsimons ,

for Geo. Meade.

George Haynes.

David H. Conyngham.

J. Ross.

by italics, were subscribers to the

Directors’

Minutes,

November

1781.

9

34

A HISTORY OF

1781

Directors’
Minutes,
November 2,
1781.

Directors’
Minutes,
November
26, 1781.

Lives of
Eminent
Philadel-
phians now
Deceased.

Tit. “Thom¬
as Willing.”

gentlemen who had controlled the affairs of the
Pennsylvania Bank were called upon to assume
the management of the new national enterprise.
The following was the hoard of directors chosen :
Thomas Willing, Thomas Fitzsimons, John Max¬
well Nesbitt, James Wilson, Henry Hill, Samuel
Osgood, Cadwalader Morris, Andrew Caldwell,
Samuel Ingles, Samuel Meredith, William Bing¬
ham, and Timothy Matlack. At a meeting of the
hoard held the following day Thomas Willing was
elected as president, and, a few days after, Tench
Francis as cashier.

Mr. Willing was, from his social position, busi¬
ness talents, and political experience, well qualified
to fill the responsible position to which he was now
called. He was to he reckoned, undoubtedly, as a
leading man in the State, if not in the country at
large. Born on the 19th of December, 1731, he
was now, at the age of fifty, in the very prime of
his powers. He was a partner of Bobert Morris
in a large and prosperous business, and had served
successively as Secretary to the Congress of Dele¬
gates at Albany, Judge of the Supreme Court of
Pennsylvania, Mayor of Philadelphia, Member of
the Colonial Assembly, and President of the Pro¬
vincial Congress. He was afterwards chosen as a
delegate to Congress under the Confederation and
as first president of the Bank of the United States.

“ His character,” says Mr. Binney, “ was not

I782--I79I.

THE BANK OF NORTH AMERICA.

35

unlike that of Washington, and, in the discretion
of his conduct, the fidelity of his professions, and
the great influence, both public and private, which
belonged to him, the destined leader (Washington)
was certain to find the elements of an affinity by
which they would be united in the closest man¬
ner.” “ This excellent man,” he says again, “ in
all the relations of private life, and in various sta¬
tions of high public trust, deserved and acquired

the devoted affection of his family and friends, and
the universal respect of his fellow-citizens.”

After this happy choice the affairs of the bank
rapidly progressed. By December $85,000 in
cash had been raised, exclusive of the amount of
the government deposit, and, although the sub¬
scription was far from complete, it was resolved to
apply to Congress for a charter of incorporation.
The measure was introduced, but was not passed
without some opposition. The opinion had come
to be largely entertained that the Confederation
contained no power to incorporate a bank. Con¬
gress, however, had already pledged its word.
Some concessions were made to the scruples of
the opposition, and on December 31, 1781, an
ordinance was finally passed perpetually incor¬
porating the subscribers by the name and style of
“ The President, Directors, and Company of the
Bank of North America.” This ordinance dis-

1781

The Repub¬
lican Court,
161.

Inscription
upon his
tombstone,
written by
Horace Bin-
ney, Esq.

6 Bancroft’s
History of
the United
States (Cen¬
tennial Edi¬
tion), 463.

tinctly recognized the fact that the exigencies of

36

A HISTORY OF

\

1781

Journal of
Congress,
December 31
1781.

1

the United States rendered it indispensably neces¬
sary that such an institution should be called into
being ; it conferred the ordinary corporate powers,
among them the right to hold property to the value
ot ten millions of dollars ; it recognized the officers
already chosen as duly and properly elected, and
declared that everything therein contained should
“ he construed and taken most favorably and bene¬
ficially for the said corporation.”

A clause was introduced forbidding the bank to
exercise any powers in any of the States repugnant
to the laws thereof, a provision with which the
opponents of the measure declared themselves well
satisfied. As a further concession to their preju¬
dices, it was agreed that a supplementary resolu¬
tion should be passed recommending to the several
States to give full force and effect to the incor-
porating ordinance. This was peculiarly agree¬
able to Madison, who regarded the requisition as
a tacit admission by Congress of their defect of
power.

THE BANK OF NORTH AMERICA.

37

CHAPTER III.

1782-1784.

The Bank of North America begins its Operations on January 7,
1782 — Circular Letter of the Superintendent of Finance an¬
nouncing this Fact to the Governors of the various States —
Early Difficulties experienced by the Bank — Stories relating
to it circulated by its Enemies — Rapid Success of the Insti¬
tution — Recognition of its Existence by Connecticut, Rhode
Island, and Massachusetts in January and March, 1782 — A
Charter granted to it by the Assembly of Pennsylvania on
March 26, 1782 — Opposition to Mr. Willing on Account of
alleged Disloyalty — Assistance afforded by the Bank to the
National Government — Assistance afforded by it to the State
of Pennsylvania — Assistance afforded by it to the City of
Philadelphia — Proposed Establishment of the Bank of Penn¬
sylvania in 1784 — Abandonment of the Scheme in Conse¬
quence of the Increase in the Capital Stock of the Bank of
North America — Subscriptions to the New Stock.

On the 7th of January, 1782, the Bank of
North America began active operations. Its busi¬
ness was conducted in a commodious store belong:-

o

ing to its cashier, Tench Francis, situate on the
north side of Chestnut Street, a short distance
west of Third, which had previously been leased
and fitted up for its accommodation.1 • In these

1 The bank subsequently purchased the lot and buildings tbereon.
The following is an abstract of tbe title :

5

Considera¬
tions on the
Bank of
North Amer¬
ica. Phila¬
delphia,

1785, 29.

Directors’
Minutes,
November
20, 1781.

38

A HISTORY OF

1782 quarters the bank continued its operations for up¬
wards of sixty-five years.1

Tench Francis et ux to John Wilson, May 24, 1792. (See Deed
Book, No. 3G, page 105, etc.)

John Wilson ct ux to Mordecai Lewis, Miers Fisher, and Bohert
Wain, as Trustees for the Bank, December 20, 1793. (See Deed
Book, No. 40, page 522, etc.)

Eobert Wain, surviving Trustee, et ux to The President, Directors,
and Company of the Bank of North America, February 3, 1821.
(See Deed Book F. W., No. 9, page 198, etc.)

1 The following is a description of the Banking House as it appeared
on December 3, 1839, taken from a survey made that day by the sur¬
veyor of the “ Philadelphia Contributionship” :

“The Bank of North America, situate on the north side of Chesnut
Street, west of and near Third Street, being 38 feet front by 45 feet
deep, three stories high, exclusive of an octagon back, one story high,
18 and 9 inch walls. The lower story is one main room, with three
small apartments, divided otf by a boarding about four feet high, with
turned ballusters on the top, for the use of the President, Cashier,
and a discount-room, and a counter in the middle iiearly the length
of the main room ; a girder under the second floor supported by three
turn’d columns; a large vault on the west side of the room three
stories high, with iron doors opening into it in each story, and a
small fire-proof in two of the small rooms above mentioned ; . . .
single architraves and mouldings to the windows; a vestibule inside
the front door, with folding sash-doors hung in it; glass, 13 by 19
inches; outside shutters front and back; two plain marble mantels
in the lower story.

“The second story is divided into four rooms and passage; . . .
base and surbase round; double and single architraves to the doors
and windows; two marble mantels, with open pilasters; recess
closets; glass, 13 by 19 inches, pannel’d inside; shutters front and
back and outside do. to the back windows.

“The third story in four rooms and passage, . . . plain base and
surbase round; single architraves and mouldings; glass, in front, 13
by 27 inches ; back, 9 by 11 ; plain stairs, with windows in the lower

THE BANK OF NORTH AMERICA.

39

The bank hours were from ten in the morning
until one in the afternoon, and again from three
in the afternoon until live.

Directors’
Minutes,
November 5,
1782.

1782

The regular employes of the bank were only six

in number, — the cashier, the teller, the sub-teller,
the accomptant, the clerk, and the porter. They

but $1000 a year, the porter but $100. The ac¬
counts were all kept in Mexican dollars and nine¬
tieth parts thereof. Directors’ meetings were held
every Thursday, and two members of the board
were chosen monthly to inspect and control the
affairs of the bank.

The institution being now fairly under way, the
Superintendent of Finance issued the following
circular letter announcing the fact to the gov¬
ernors of the various States :

Office of Finance, January 8th, 1782.

Sir, — I have the honor to transmit herewith an ordinance passed
by the United States, in Congress assembled, the thirty-first day
of December, 1781, incorporating the subscribers to the Bank of
North America, together with sundry resolutions, recommending
to the several States to pass such Laws as they may judge neces¬
sary for giving the said ordinance its full operation. The reso-

corner leading from the lower to the third story; garret plastered,
and plain sky-light in the roof.

“Old-fashioned wooden eaves; the front dentil, hack plain; roof
covered with copper, and copper pipes down ; the cellar floored
with brick, and two furnaces therein, which appear to be safely con¬
structed.”

40

A HISTORY OF

1782

9 Pennsylva¬
nia Archives,
477.

lutions of the 26th May last speak so clearly to the points neces¬
sary to be established by these Laws, that I need not enlarge on
them. Should anything more be found necessary upon expe¬
rience, the President and Directors will, no doubt, make suitable
application to Congress, or to the States respectively, as the case
may require. It affords me great satisfaction to inform your
Excellency that this Bank commenced its operations yesterday,
and I am confident that, with proper management, it will answer
the most sanguine expectations of those who befriend the Insti¬
tution. It will facilitate the management of the Finances of the
United States. The several States may, when their respective
necessities require, and the abilities of the Bank will permit,
derive occasional advantage and accommodation from it. It
will afford to the individuals of all the States a medium for their
intercourse with each other and for the payment of Taxes, more
convenient than the precious metals, and equally safe. It will have
a tendency to increase both the internal and external Commerce
of North America, and, undoubtedly, will be infinitely useful to
all the Traders of every State in the Union, provided, as I have
already said, it is conducted on the principles of equity, justice,
prudence, and economy. The present Directors bear characters
that cannot fail to inspire confidence, and, as the corporation is
amenable to the Laws, power can neither sanctify any improper
conduct nor protect the guilty. Under a full conviction of these
things, I flatter myself that I shall stand excused for recom¬
mending in the strongest manner this well-meant plan to all
the encouragement and protection which your State can give
consistently with Wisdom and Justice.

I have the honor to be, with great respect,

Your Excellency’s most obedient &

Most li’ble serv’t,

Bob’t Morris.

THE BANK OF NORTH AMERICA.

41

The first operations of the hank were attended
with, considerable difficulty. Morris, in order to
strengthen its position as far as possible, sub¬
scribed, on account of the United States, what re¬
mained of the specie lately arrived from France.
With the utmost care and caution he had only
been able to retain about $254,000 of this sum,
and this amount enabled him to buy in for the
national treasury 633 shares of bank stock. But
what he thus paid in with one hand he may be
said to have drawn out with the other. Within
a very short period the great necessities of the
country obliged him to borrow from the bank
amounts far exceeding the sum subscribed, so
that the institution had little benefit from it as
a means of establishing its credit. Nor was the
whole amount of the individual subscriptions yet
paid in, owing to the great scarcity of money.
As a consequence, the amount of specie in the
vaults at times dwindled to an alarming extent,
and so great were the fears of an early exhaustion
of this sum, that at critical periods men were regu¬
larly employed to follow those who demanded
specie and urge them to return it in order to
preserve the precious foundation.

In addition to all this, it was found that the
notes of the bank would not readily circulate.
Army contractors, when paid in this way, almost
invariably carried the bills to collectors, and got

1782

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

178G, 48.

Official Ac¬
counts of the
United States
from 1781 to
1784.

Bolles’ Fi¬
nancial His¬
tory of the
U nited
States, 273.

42

A HISTORY OF

1782

Letter, Alex¬
ander Ham¬
ilton to Rob¬
ert. Morris,
September
21, 1782.
Hamilton’s
Works, vol.
i. p. 308.

Bolles’ Fi¬
nancial His¬
tory of the
United
States, 273.

Gouge’s His¬
tory of Paper
Money and
Banking, 35.

the amount in specie. In New England, the
people, fresh from the recollection of Continen¬
tal money, were very loath to receive the bank
issues at all, so that they circulated at from ten
to fifteen per cent, below par. Stories were cur¬
rent, and actually believed, that the bank made
a show of far greater wealth than it actually pos¬
sessed. “ Gentlemen interested in the institution,”
it was said, “ were in the habit of requesting peo¬
ple from the country and laboring men about
town to go to the bank and get silver in exchange
for notes. When they went on this errand of
neighborly kindness, as they thought it, they
found a display of silver on the counter, and men
enqdoyed in raising boxes containing silver, or
supposed to contain silver, from the cellar to the
banking-room, or lowering them from the banking-
room into the cellar,” by which contrivances they
were induced to believe that the bank was pos¬
sessed of immense wealth.

But all difficulties were soon overcome. A con¬
siderable sum in specie arrived from Europe and
the West Indies, and little by little the amounts
subscribed by individuals to the capital stock were
paid into the treasury. The deposits gradually
rolled up. Morris, by skilful management, pre¬
vented further issues from floating into that part
of the country where they were badly received.
The depreciation was quickly checked. Bank-

THE BANK OF NORTH AMERICA.

bills rose to their par value, and were there sus¬
tained without further trouble. The directors felt
every reason for encouragement, a general confi-
dcnce succeeded to the former mistrust, and by
November the stockholders were able to congratu¬
late the officers upon “the skill and attention they
had manifested in arranging an institution alto¬
gether new in America, the good effects of which,”
they declared, “ the public had already experi¬
enced.”

Meantime, in spite of the early difficulties of the
bank, some of the States had not been backward
in acknowledging its existence.

On January 10 the Assembly of Connecticut
passed an act declaring that the bank’s notes
should be receivable in payment of all taxes due
the State. About the same time the Assembly
of Rhode Island passed a law for the punishment
of those who might counterfeit its notes or em¬
bezzle its funds, and on March 8 the State of
Massachusetts actually created it a corporation ac¬
cording to the laws of that Commonwealth.

Much doubt being entertained as to the validity
of the charter granted by Congress, it was now
thought by the Board of Directors that the credit
and efficiency of the organization might be mate¬
rially assisted if a charter could be obtained from
the State of Pennsylvania.

A memorial to that effect was drawn up, and on

48

1782

Holies’ Fi¬
nancial His¬
tory of the
U nited
States, 274.

Stockhold¬
ers’ Minutes,
November 4,
1782.

Considera¬
tions on the
Bank of
North Amer¬
ica, 6.

44

A HISTORY OF

1782

Considera¬
tions on the
Bank of
North Amer¬
ica, 32.

Journal of
Assembly,
February 21,
1782.

Journal of
Assembly,
February 25,
1782.

February 9 transmitted, with the following let¬
ter, to the President of the Supreme Executive
Council :

Sir, — The President, Directors, and Company of the Bank of
North America, incorporated by the United States, in Congress
assembled, have thought it proper to petition the General Assem¬
bly for a similar charter, and such support from the government
of the State, as may render the bank capable of yielding those
advantages to the general cause of America which are intended
thereby ; and this institution being encouraged and supported by
citizens of other States, as well as that in which it happens to be
established, the most respectful and proper mode of presenting
the petition to the Honorable House appearing to be through the
Supreme Executive Council of the State, we have inclosed the
same to you, and request you to lay it before the General Assem¬
bly as soon as they shall meet. I have the honor to be
Your Excellency’s most obedient servant,

Thomas Willing, President.

His Excellency William Moore, Esq., President.

On February 21 President Moore forwarded the
memorial to the Assembly, and on the 25th a bill
was introduced providing for the incorporation of
the bank. Its terms were in every respect iden¬
tical with those of the ordinance of Congress al¬
ready mentioned. On the 25th of the ensuing
March the bill had reached its final stages with¬
out serious opposition, but at this point difficulties
arose. The attribute of perpetual existence, and
the capacity to hold a large amount of property,
both of which were conferred by the proposed

THE BANK OF NORTH AMERICA.

45

charter, seemed, in the eyes of some members,
dangerous to the true interests of the State. It
was, therefore, proposed that a clause should he
inserted limiting the period of the bank’s existence
to seven years, and prohibiting it from holding
real estate. These proposed amendments were
readily rejected, but on the following day still
another difficulty was found to stand in the way.
An opinion was entertained by some of the mem¬
bers of the Assembly that the president of the
bank, Mr. Willing, had not at one period mani¬
fested sufficient zeal in the national cause.

While the British were in possession of Phila¬
delphia in 1777, Sir William Howe despatched
from time to time messengers charged with secret
offers to the various members of Congress, with
the hope of inducing them to conclude a jieace
on some other basis than that of independence.
Among those who were thus sent out was one
John Brown, who had the misfortune to be ar¬
rested by the American troops, and was by reso¬
lution of Congress brought before the Pennsylvania
Council of Safety. Upon his examination before
that body he declared that he had been induced
to embark in the undertaking chiefly through the
solicitations of Mr. Willing. This story now af¬
forded ground to some of the bitter Whigs in the
House to refuse their assent to the confirmation of

Mr. Willing in his office. They wished to have

6

1782

Journal of
Assembly,
March 25,
1782.

Ibid.,
March 26,
1782.

Minutes of
the Council
of Safety,
November 21

and 22, 1777.
11 Colonial
Records, 344-
347.

46

A HISTORY OF

1782

Journal of
Assembly,
March 2 B,
1782.

Ibid., April
1, 1782.

the whole clause nominating the officers stricken
out, and accordingly made a motion to that effect.
“ We consider it,” said they, “ highly impolitic
and unjust to recognize and establish by an act
of the Legislature in so eminent and honorable a
station the man who not only abandoned the cause
of our country in the hour of our deepest distress
and calamity, but whilst the British army was in
Philadelphia actually suffered himself to be em¬
ployed by them as the instrument and agent of
their insidious attempts to debauch the minds of
the peojffe, and even to reduce our public councils
into submission. W e think that loading with
honors a man who so lately did what he could
to enslave this country is a discouragement to the
Whigs, is a wound to the cause of patriotism, and
is trampling on the blood of those heroes and
martyrs who have fallen in defence of our
liberty.”

Notwithstanding all opposition, the bill at length
passed in its original shape. A desperate effort
was subsequently made to reserve to the Assembly,
in 1789, a right to withdraw the privileges they
had conferred, but the attempt failed. The bank
accepted the new charter, and continued its opera¬
tions as an institution duly incorporated under the
laws of Pennsylvania.

The advantages derived from the establishment
of the bank soon answered the most sanguine ex-

THE BANK OF NORTH AMERICA.

47

pectations of its projector. In a wonderfully short
time it restored confidence and credit, at least in
some degree, to the commercial world. Nor was
the assistance which it was enabled to afford the
Government less valuable. In the beginning of
the year 1782 the United States owed consider¬
able sums of money. The requisitions made by
Congress for the expenses of the coming year
amounted to eight millions of dollars. But. the
States were not called on to pay this sum until
the 1st of April, and, as a matter of fact, the re¬
quisitions produced so little effect that by the end
of June not more than $30,000 had been raised.
“ At that period,” says the Superintendent of Fi¬
nance, “the public credit had gone to wreck, and
the enemy built their most sanguine hopes of
overcoming us upon this circumstance, but at
this crisis our credit was restored by the bank.”

The aid afforded to the Government by actual
cash advances was alone very considerable. During
January, February, and March of 1782 the bank
loaned for this purpose, in all, the sum of $300,000.
By July 1 $100,000 more had been advanced,
making a total of $400,000 during the year. Nor
was this the only advantage reaped by the United
States Treasury. Holding as it did at this period
$253,000ff in bank stock, or rather more than
five-eighths of the whole capital of the institution,
it received, in common with the other stockholders,

1782

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Pepeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

1786, 49.

Ibid.

Statement of
the Accounts
of the United
States, 1782-
1784.

48

A HISTORY OF

1782

Montefiore's
Dictionary of
Commerce,
American
Edition,

1803. Tit.

“ Bank of
North Amer¬
ica ”

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

1786, 49.

Statement of
the Accounts
of the United
States, 1782—
1784.

the very laro-e dividends which were declared by
the bank, much more than compensating for the
interest which it paid upon its loans.

In December the president and directors grew
uneasy at the extent of the Government loan, and
asked for some reduction. The Superintendent of
Finance accordingly sold out $200,000 of the Gov¬
ernment stock, and paid to the bank $300,000 of
the amount borrowed. During the first half of the
year 1783 the bank advanced to the Government
about $30,000. In July the rest of the Govern¬
ment stock was sold, principally to capitalists in
Holland. By October 1 $25,000 more had been
advanced to the national treasury, making the
aggregate advance at that time about $165,000.
This amount was not finally paid off until Jan¬
uary 1, 1784.

In addition to the actual cash advances made to
the Government, the bank was enabled in several
other ways to afford it invaluable assistance. The
large amount of specie deposited in the bank vaults
enabled it from time to time to discount in consider¬
able amounts bills drawn on the Superintendent of
Finance, so that the public agents were enabled to
purchase for cash, and the Treasury was afforded
time to provide the means of payment. It was in
this way that the army was supplied with clothes
and provisions, and the various public departments
largely assisted until the close of the war. Before

THE BANK OF NORTH AMERICA.

49

July 1, 1783, discounts of this kind had been made
to the extent of $820,000. “ Without the establish¬
ment of the national bank,” said Morris, “ the busi¬
ness of the Department of Finance could not have
been performed. From the aids given by this in¬
stitution the United States were able to keep up an
army consisting of a larger number of men than
they had had in the field before, or than they could
have maintained without these aids. The army
was in every point on a much more respectable
footing than formerly, and they kept the enemy
at bay.”

“ But the United States were not the only per¬
sons benefited by this institution. The Legislature
of the State of Pennsylvania, being unable to pay
the officers of their army, granted them certificates
of indebtedness, and mortgaged the revenue of the
excise for payment of interest. When the interest
became due the revenue was not collected, and the
distress of the officers was great. On that occa¬
sion, without any particular application, the bank
advanced the money, and took the reimbursement
when the revenue was collected.”

Again, in February, 1782, when the State of
Pennsylvania found itself so embarrassed that it
was unable to pay its quota to the United States
Government, the bank, without hesitation, agreed
to advance $80,000 on its behalf.

During the first few months of the same year,

1782

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

1786, 49.

Ibid., 50.

Ibid., 105.

50

A HISTORY OF

1782

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

1786, 106.

when, owing to the unprotected state of Delaware
Bay and Biver, the enemy’s row-boats sometimes
took vessels within the very Port of Philadelphia,
and the State had not the means of granting pro¬
tection against so inconsiderable though insulting
an enemy, the bank, by an advance of about
$22,500, enabled the merchants to fit out a ship,
which, within a few days, not only cleared the
Bay and River, but captured a cruiser of twenty
guns belonging to the British fleet.

On September 17, 1782, the hank advanced to
the State Treasurer, for the defence of the western
frontiers, no less than £5000, and even agreed to
lend a further sum if necessity should arise. In
January, 1785, it loaned the City Wardens $2400,
and the Managers of the House of Employment
$4000. In short, it proved of most material assist¬
ance both in State and municipal affairs. “ The
instances of its services,” said a distinguished mer¬
cantile gentleman of the time, “ are innumerable.
Ask the managers of the House of Employment.
They will tell you the poor could not have been
fed without the existence of the bank. Ask the
wardens of the city, and they will tell you that the
city could not have been lighted but by means of
the loans obtained there. But it is needless to re¬
peat the instances, for I may say there is no ser¬
vice, public or charitable, to which its assistance
has been denied.”

Ibid.

THE BANK OF NORTH AMERICA.

51

By the beginning of the year 1784 the success
of the bank was assured. The business and the
profits alike rapidly increased, so that, notwith¬
standing the heavy loans with which they obliged
the public, the directors were enabled to declare
annual dividends for that and the following year at
an average rate of fourteen jier cent., thus making
bank stock the most desirable of investments.

So great, indeed, was the demand made upon the
bank for loans to aid both public and private enter¬
prises, that the stockholders now felt emboldened
to increase the amount of their capital. On Jan¬
uary 12, 1784, they accordingly authorized the
directors to open the books of the bank on the

1st of the following February for a new subscrip¬
tion of one thousand shares, at the rate ot $500 a
share, the new stockholders to stand on a par with
the old, and to pay the amount of their various
subscriptions at once. The shares were rapidly
taken up, but meantime a difficulty arose which
had not been anticipated.

A number of influential citizens, who saw and
envied the success of the Bank of North America,
were anxious to participate in the profits of so
lucrative a business, but did not feel disposed to
pay the difference between the original and the
advanced value of its shares. They resolved,
therefore, to set on foot a rival institution, to be
known by the name of the Bank of Pennsylvania.

1784

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

1786, 106.

52

A HISTORY OF

1784

Political
Essays, by
Pelatiah
W ebster,
448.

Journal of
Assembly,
February 10,
1784.

Ibid., Feb¬
ruary 26,
1784.

Tbicl. , Feb¬
ruary 28,
1784.

Ibid., March
10, 1784.

The directors of the old bank, they assured the
public, had been guilty of a haughtiness and par¬
tiality in their method of conducting business of
which no one would ever find cause to accuse the
officers of the new institution. It was better, at
any rate, they argued, to have “ two shops to go
to” in banking as in other business.

Large subscriptions were rapidly got together,
and an organization effected. On the 10th of
February application ivas made to the Assembly
for a charter. The matter was referred to a com¬
mittee, who reported in favor of granting the
prayer of the memorial. On the 26th the Bank
of North America presented an application asking
that it might be heard by counsel as to the impro¬
priety of granting the new charter. But no atten¬
tion was paid to the request, and, on the 28th, the
matter was referred to a committee to bring in the
draft of a bill. On March 10 the committee re¬
ported, and for a while the measure was allowed to
lie on the table.

Meantime, the directors and stockholders of the
old bank had been looking with great anxiety at
the progress of the new enterprise. They strongly
urged what to them seemed the fatal consequences
of two capital banks operating in one city. They
might, they feared, act in opposition to each other,
and would be sure eventually to be of mutual dis¬
advantage.

THE BANK OF NORTH AMERICA.

A meeting of the stockholders of the Bank of
North America was therefore convened on the 1st
of March, and, as an effectual check to the new
undertaking, it was resolved to extend the new
subscriptions, opened on February 1, to four thou¬
sand shares, at the rate of but $400 a share. All
those who had already paid in their money at the
rate of $500 a share were to have the surplus re¬
turned to them, together with interest at the cur¬
rent rate. The device acted admirably. The sub¬
scribers to the Bank of Pennsylvania were readily
prevailed upon to relinquish their scheme, and to
substitute for the uncertain fortunes of a new un¬
dertaking a share in the profits of an institution
whose success Avas already assured. On March 16,
when the matter came up before the Assembly, the
directors of the neAV bank asked leave to Avithdraw
their application for a charter. Permission to that
effect Avas granted. The subscriptions to the old
bank rapidly floAved in, and by June 13, on Avhicli
date the books Avere closed, the capital AAras found
to amount to $830,000.

1784

Stockhold¬
ers’ Minutes,
March 1,
1784.

Political
Essays, by
Pelatiah
Webster,

448.

4 Hazard’s
Historical
Pegister, 130.

7

54

A HISTORY OF

1785

CHAPTER IV.

1785-1768.

Pennsylvania Paper Currency — Popular Demand for the issuing
thereof in 1785 — Attitude of the Bank of North America
adverse to the Scheme — Growing Unpopularity of the Bank
— Petitions presented to the Assembly praying for a Repeal
of its Charter — Arguments for and against the Bank — The
State Charter annulled on September 13, 1785 — Views of the
Directors as to this Action — Continuance of the Bank’s Opera¬
tions — A Charter granted to the Bank by the State of Dela¬
ware on February 2, 1786— Attempts to obtain a Repeal of
the Annulling Act — A New Charter granted by the State of
Pennsylvania on March 17, 1787 — Provisions of the Charter —
Prosperity of the Institution — Establishment of other Banks.

No sooner was the difficulty about the proposed
Bank of Pennsylvania settled than another and
still fiercer contest was forced upon the Bank of
North America. Pennsylvania had before the
Revolution been more successful than any other
colony in circulating and sustaining the credit of
its paper money. The bills had been issued in the
shape of loans to individuals, secured by mortgage
on their lands, and were payable at the expiration
of ten years from the date of emission, a tenth part
being usually annually discharged with interest.

THE BANK OF NORTH AMERICA.

55

By these prudent measures they were, as a rule,
kept at par with specie, and never suffered any
but slight fluctuations.

A numerous party now arose in the State, who
demanded and obtained a renewal of this line of
policy. But they readily saw that unless the
bank would give the new bills currency the State
could never hope to get them into circulation.
This the directors were at first both unwilling and
unable, to any great extent, to accomplish. Hence
the bank came to be regarded by many as the op¬
ponent of the paper money scheme. It was in
vain that Morris argued that the bank had with¬
drawn its opposition to the scheme, and showed
by the ledgers and accounts the large amounts of
the new currency which the bank did actually
accept. By March of 1786 it had received on
deposit £107,280 14s., or nearly the whole of the
emission, except that which had been reserved for
the operations of the loan-office. But its early
inimical attitude had proved fatal to its popu¬
larity.

One source of trouble led to another. The
financial distresses of the mercantile world were
still undoubtedly great. The total prostration of
business during the period of the Revolutionary
War had been succeeded, on the conclusion of
peace, by an excess of British importations, drain¬
ing specie from the American market. As a re-

1785

Holies’ Fi¬
nancial His¬
tory of the
United
States, 27.

Ibid., 345.

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Kepeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

1780, 119.

56

A HISTORY OF

1785

Journal of
Assembly,
March 21,
1785.

suit, money was scarce and usury common. The
suffering to which all classes were subjected was
great. The public sought some adequate cause
for their miseries, and thought they found it in
the establishment of the bank. The Democratic
party, then just coming into existence and power,
embraced the popular opinion. It was not long
before the opposition took a tangible shape. On
March 21, 1785, a iietition was presented to the
Assembly, from a number of the inhabitants of
Chester County, praying that steps might be taken
to repeal the charter of the bank. There was no
evil from which the country was suffering but was,
in the opinion of the petitioners, to be ascribed to
the baleful influences of that institution. Usury,
extortion, favoritism, harshness to its creditors, op-
position to the favorite schemes of the Assembly,
the possession of undue and dangerous political
and commercial influence, all these were laid at
its doors. The abolition of so harmful an organ¬
ization they thought was alone necessary for a
restoration of public and private prosperity.1

1 “ Petitions from a considerable number of the inhabitants of Ches¬
ter County were read, representing that the hank established at Phil¬
adelphia has fatal effects upon the community; that whilst men are
enabled by means of the bank to receive near three times the rate of
common interest, and at the same time to receive their money at very
short warning whenever they have occasion for it, it will be impos¬
sible for the husbandman or mechanic to borrow on the former terms
of legal interest and distant payments of the principal ; that the best

THE BANK OF NORTH AMERICA.

57

A great number of similar petitions was about
the same time presented, and on March 23 a
committee was accordingly appointed “to inquire
whether the bank established at Philadelphia was
compatible with the public safety and that equality
which ought ever to prevail between the individuals
of a republic.”

The controversy once aroused, a war of pam¬
phlets and arguments ensued. The opponents of
the bank abounded with objections to its method
of transacting business, and urged with vehemence
what they deemed its disastrous effects on the com¬
munity. It enabled men to trade to their own

security will not enable the person to borrow ; that experience clearly
demonstrates the mischievous consequences of the institution to the
fair trader; that impostors have been enabled to support themselves
in a fictitious credit by means of a temporary punctuality at the bank,
until they have drawn in their honest neighbors to trust them with
their property, or to pledge their credit as sureties, and have been
finally involved in ruin and distress ; that they have repeatedly seen
the stopping of discounts at the bank operate on the trading part of
the community with a degree of violence scarcely inferior to that of
a stagnation of the blood in the human body, hurrying the wretched
merchant who hath debts to pay into the hands of griping usurers ;
that the directors of the bank may give such preference in trade, by
advances in money to their particular favorites, as to destroy that
equality which ought to prevail in a commercial country; that paper
money has often proved beneficial to the State, but the bank forbids
it, and the people must acquiesce; therefore, and in order to restore
public confidence and private security, they pray that a bill may be
brought in, and passed into a law, for repealing the law for incor¬
porating the bank.” Journal of the Assembly of Pennsylvania, vol.
ix. p. 233, etc.

1785

58

A HISTORY OF

1785

Considera¬
tions on the
Bank of
North Amer¬
ica. Phila¬
delphia, 1785.

Address to
the Assembly
of Pennsyl¬
vania on the
Abolition of
the Bank of
North Amer¬
ica. Phila¬
delphia, 1785.

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia, 1786.

Dissertations
on Govern¬
ment, the
Affairs of the
Bank, and
Paper
Money, by
Thomas
Paine. Phila¬
delphia, 1786.

min and that of their creditors, by giving them
the temporary use of credit and money. Its slen¬
der capital, as compared with the vastness of its
transactions, rendered it merciless in the strict
punctuality which it required of its debtors, thus
frequently throwing honest men into the hands of
usurers. The great dividends on bank stock in¬
duced moneyed men to invest in this way rather
than lend to the public at a reasonable rate of in¬
terest. Rich foreigners would for the same reason
be induced to buy up bank stock, until, finally,
the whole capital of the institution would be owned
abroad, and the country constantly drained of
specie by the exportation of the dividends in coin.
The bank injured the circulation of the State bills
of credit. The directors were by their position
enabled to obtain unfair advantages in trade for
themselves and their friends. The wealth and
influence of the corporation, and particularly its
attribute of perpetual existence, were dangerous to
the Government, and destructive of that equality
which ought to exist in a free country.

Such were the chief arguments used by the
Democratic party in favor of the repeal of the

The True In¬
terest of tlie
United
States, and
particularly
of Pennsyl¬
vania, Con¬
sidered, etc.,
with some

charter.

In answer to these, the supporters of the bank
urged a variety of considerations. They admitted
it to be true that some persons had been ruined by
the help of a fictitious credit, but this they averred

THE BANK OF NORTH AMERICA.

59

proceeded from the folly of the borrower, and not
from the fault of the bank. His misfortune was a
consequence not of the use, but of the abuse, of the
privileges which the bank afforded. “ It would be
a marvellous thing to prohibit the use of water
because some people choose to drown themselves.”

They conceded that the punctuality required by
the bank was sometimes injurious in its result,
yet they pointed out that the borrower should be
more careful in calculating when he could repay,
and that the bank should not be blamed for en¬
forcing an agreement into which their customer
had voluntarily entered. They denied that the
bank stock in the market prevented investment
in other directions. They showed how inconsider¬
able a proportion the capital of the bank bore to
the floating cash of the country, and attributed the
stringency of the money market rather to the drain
of specie abroad, and to the fear of a paper issue,
followed by a legal tender enactment, than to any
causes over which the bank held control. They
averred that the purchase of bank stock by for¬
eigners was rather to be encouraged than dreaded.
It was sure to bring specie into the country and
to secure numerous friends abroad, who would
dread nothing so much as the occurrence of a war
with any European power. As to the exportation
of dividends, they urged that this should consti¬
tute no cause for apprehension as long as the prin-

1785

Observations
on the Sub¬
ject of a
Bank, etc.
Philadel¬
phia, 178G.
Political
Essays, by
Pelatiah
Webster.

GO

A HISTORY OF

1785 cipal on which they were based remained among
us. They admitted that the management of the
bank had at first been opposed to the new emission
of paper money, but insisted that the institution
could now present no efficient obstacle to its cir¬
culation. They showed, indeed, that the directors
had abandoned their former policy of ©imposi¬
tion, and had lent what aid they could to the
circulation of the new bills by freely receiving
them on deposit. They challenged their oppo¬
nents to adduce one single instance of undue favor¬
itism on the part of the directors, and pointed out
the absurdity of assigning the possibility of injus¬
tice as sufficient ground for divesting chartered
rights. Finally, they contended that the institu¬
tion, so far from being dangerous to the Govern¬
ment, had already proved itself of most material
assistance to it. Nor could they understand how
the existence of a corporation so beneficent in its
operations could be deemed inconsistent with the
principles of the Republic.

Other considerations were presented by the
friends of the bank of equal, if not greater, weight.
They claimed that Congress had not exceeded its
powers in calling the corporation into existence;
that a national bank had become a national neces¬
sity, and, as such, was properly created by the cen¬
tral national power. Implied authority to this end
they claimed was conferred by the Articles of Con-

THE BANK OF NORTH AMERICA.

G 1

federation upon Congress by the clause enabling
it to borrow money on the credit of the various
States. Assuming, therefore, the validity of the
Congressional Ordinance of Incorporation, they
urged with great force that the repeal of the
charter granted by the State would be nugatory,
and that the bank would be enabled to continue
business without interruption.

W aiving this point, they insisted that the stock¬
holders of the Bank of North America could not
be constitutionally deprived of their property in
their chartered rights without due compensation
being made them by the State, or the institution
of a judicial proceeding in the nature of a quo
ivarranto. And even if it was competent for the
Legislature thus to override private rights, they
pointed out the folly of such an arbitrary exercise
of power as sure to shake the confidence alike of
our own people and foreign nations in the credit
and honesty of the Commonwealth.

In addition, they recalled to the minds of the
people the great and solid benefits which the bank
had already conferred, its loans to the Govern-
ment, its assistance to the State, its support to
trade and commerce, its invaluable services in
aiding to restore the country to a sound financial
basis ; and they expressed a hope that, if per¬
mitted to carry on its prosperous and increasing

business, it would continue to perform for the

8

1785

62

A HISTORY OR

1785

Letter, Mor¬
ris to Daniel
Clarke, May
30, 1782.
Diplomatic
Correspond¬
ence, vol. xii.
p. 1G8.

Journal of
Assembly,
March 21
and 23, 1785

Ibid., March
28, 1785.

Ibid., March
29, 1785.

community the same beneficent offices of which

t J

experience had shown that it was capable. If
thwarted in its prospects by legislative inter¬
ference, a diminution in its sphere of usefulness
was of course to be anticipated, but even then they
ventured to predict that it would “exist in spite
of calumny, operate in spite of opposition, and do
good in spite of malevolence.”

Meantime, a host of petitions for and against
the proposed repeal were presented to the Assem¬
bly. About twelve hundred signatures urged the
measure : about half as many opposed it.

The weight of popular opinion was too strong
to be withstood. On March 28 the committee to
whom the matter had been referred reported that
in its opinion the bank as then managed was in
every way inconsistent with the public safety, and
it therefore recommended that a bill should be
at once brought in to repeal the act of incorpora¬
tion. It was in vain that the friends of the insti¬
tution moved to substitute the phrase “alter or
amend” for the word “ repeal.” The amendment
was rejected by a two-thirds majority, the report
accepted, and the committee at once reappointed
to bring; in a bill in accordance with its own rec-
ommendation. On the following day, March 29,
the committee reported the bill to the House, and
at the same time a most respectful memorial was
read from the President and Directors of the Bank

THE BANK OF NORTH AMERICA.

of North America, praying that they might he
heard by counsel against the proposed measure.

On April 4 the bill came up for second reading,
and the House determined to push it with vigor.
The bank was refused permission to be heard by
counsel, a motion to postpone the consideration of
the bill was lost, and by an overwhelming ma¬
jority it was ordered to be transcribed and printed
for public circulation and comment.

The House soon after adjourned, but the direc¬
tors of the bank could now have little doubt what
the fate of their charter would be. They resolved,
therefore, to make application to Congress for some
relief from their embarrassing position. James
Wilson, one of their number, took upon himself
the task. The following passage from a letter
written to him on May 12, 1785, by the presi¬
dent, Mr. Willing, will best serve to indicate the
tone of feeling then prevalent among the friends
of the bank: “As to the business of the bank, the
whole must be left to your prudence to take such
steps in Congress as the magnitude of the question
and the complexion of that body may render neces¬
sary and proper. ‘ Fiat justitia et contentus sum.’
With the Assembly the word is ‘ Carthago est
delenda,’ let the Congress judge for what end or
purpose, and let them consider too that when this
political child of theirs has once breathed its last,
they have no Promethean power to call another

G3

1785

Journal of
Assembly,
April 4, 1785.

64

A HISTORY OF

1785 into existence : confidence once lost is not often,
if ever, to be regained. This is, perhaps, the only
instance where a politic body has been annihi¬
lated, and private interest and property violated,
without the least charge of abuse of power or mal¬
practice suggested, much less proved before a jury
of twelve men. In the present case not only the
Constitution of the State is violated, but the Con¬
federation of all the States is also violated, and a
stab — a mortal stab — is given to the honor of Con¬
gress and the credit of all America. We have
served our country, and served her in the worst
of times, when our present opposers gave no assist¬
ance to the means of doing it. Let them consider
this, and blush at the return they are now making.
Let the Congress, too, consider this, and then de¬
termine whether they ought not to exert their in¬
fluence with every State to support an institution
to which they have given an existence, and from
which they have received a dutiful return. I
have devoted a large portion of my time, and,
considering the period of my life, a very precious
part of it, too, to the service of my country in
the establishment of the bank, but it is my pride,
it is my greatest glory, that it has thus far
succeeded. To preserve it from destruction, and
to further our public measures, I would still go
further, I would devote the few remaining years
I have in its service rather than it should fall a

THE BANK OF NORTH AMERICA.

65

sacrifice to the delusion of party, or to the in¬
sidious designs of Tories and British emissaries.
God grant that this may not be the case. To pre¬
vent it, I conjure you, by every tie you have to
the institution of which you were an early pro¬
tector, by every tie you have to the country you
live in, to exert every nerve in its defence.”

But no effectual steps were after all taken, and
in August the Assembly of Pennsylvania again
convened. A disposition was at once evinced to
push through the bill repealing the bank’s charter.
On August 26, the first day of the session, an early
day was named for the final disposition of the

matter.

On the 30tli a second memorial was presented
from the President and Directors of the Bank,
setting forth that, although their application to be
heard at the last session of the House had failed,
they were, nevertheless, not discouraged from re¬
newing an application upon that subject, inasmuch
as they apprehended that a hearing could not be
denied them without violating both the essentials
and forms of justice. The memorial further called
to mind the great utility of the institution, both to
the State and to individuals, and expressed a firm
conviction that the petitioners would be able, if
heard, to invalidate every objection that had been
urged against it. They, therefore, prayed that
they might be allowed, before any other proceed-

1785

From a cop}'
in the posses¬
sion of the
bank.

Journal of
Assembly,
August 26,
1785.

66

A HISTORY OF

1785

Journal of
Assembly,
August 30,
1785.

Ibid., Au¬
gust 31, 1785.

Ibid., Sep¬
tember 5 and
6, 1785.

Ibid., Sep¬
tember 13,
1785.

Letter,
Thomas
Willing to
Ilis Excel¬
lency P. J.
Van Berckel
and others,
June 17,
178(5, of
which the
bank retains
a copy.

ings were taken, to appear and present their case
before the bar of the House.

On the 31st the Assembly resolved to grant the
prayer of the petition, but not without insisting
that the hearing was of grace, not of right. At the
same time they resolved that a like permission
should be accorded to the advocates of the pro¬
posed repeal.

On September 5, accordingly, Mr. Willing a])-
peared at the bar of the House, accompanied by
James Wilson, Esq., whom he presented as author¬
ized by the bank to speak in its defence. Mr.
Wilson consumed the time of the House for the
residue of that and a portion of the ensuing day,
and was followed by Jonathan Dickinson Sergeant,
Esq., who appeared on behalf of the petitioners.
But the conclusion had long since been foregone.
In the then state of popular prejudice Mr. Wilson’s
argument probably failed to convert the mind of a
single member of the Assembly. On September
13 the bill was passed, and the bank as a State
corporation ceased to exist.

Notwithstanding the deprivation of its corporate
privileges, the bank continued to transact business,
but naturally lost in some degree the confidence of
moneyed men both at home and abroad. Its stock
fell to six per cent, below par. Its cash account for
1784 had amounted in all to 59,570,000 Mexican
dollars. For 1785 it dropped to 37,000,000 Mexi-

THE BANE OF NORTH AMERICA.

07

can dollars. But, in spite of all difficulties, by the
close of the latter year its wealth was estimated at
nine hundred thousand silver dollars.

In the month of March, 1786, a careful account
was taken as to the ownership of its stock. It
was found that this now aggregated in par value
$870,400, or 2176 shares. Of these but 285
shares were owned by foreigners, nine-tenths of
whom were Dutchmen, 606 shares were owned by
citizens of New Hampshire, Massachusetts, Rhode
Island, Connecticut, New York, New Jersey, Dela¬
ware, and Virginia, 50 shares were owned by Penn¬
sylvanians resident in other parts of the State, and
all those remaining, viz., 1235 shares, were owned
by citizens of Philadelphia.

The continuance of the bank’s operations was
deemed on the part of the directors to be fully
warranted by the powers derived from the Con¬
gressional charter. But, however confident they
might be as to the validity of that instrument, they
could not but be sensible that grave doubts on that
point were entertained in the community.

Early, therefore, in January, 1786, they re¬
solved to take steps to re-establish, if possible,
their corporate existence under State sanction.
Their counsel advised them that “ the modification
of the bank’s charter, as to limitation of time or
capital, would not at all affect the Congress char¬
ter, and that it would not be improper for them to

1785

Political Es¬
says, by Pela-
tiah W eb-
ster, 447 and
449.

1786

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
a Repeal or
Suspension of
the Law an¬
nulling the
Charter of
the Bank.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

178G, 95.

68

A HISTORY OF

178G

Minutes of
Stockhold¬
ers’ Meeting,
January 9,
1786.

Booth’s Laws
of Delaware,
vol. ii. 838.

Minutes of
Directors,
February 6,
1786.

receive such tx charter.” Overtures were, therefore,
at once made to the State of Delaware for a grant
of corporate rights, which were so successful that
on February 2, 1786, the Assembly of that Com¬
monwealth passed a bill conferring upon the bank
the usual franchises of a corporation. On Feb¬
ruary 7 the directors received notice of this fact,
and readily accepted the charter and, if neces¬
sary to the transaction of their business, they

1 The following letter to Richard Bassett, Esq., of Delaware, whose
efforts had been most active in the bank’s behalf, was written by Mr.
Willing immediately on receipt of the new charter:

Bank, Feb. the 6th, 1786.

Richard Bassett, EsQr.

Sir, — I have this moment the Honor of yours of the 3d inst., cov¬
ering the Charter granted to the Bank of North America by the
Patriotick Legislature of the Delaware State. It is too late this
Evening to lay it before the Directors, and your Express is anxious
to go off early in the morning. Therefore I can only say for myself
that I feel in the highest Degree the Obligation the Institution is
under to the State of Delaware for thus kindly taking us by the
Hand and giving us their protection, at a Time when our misguided
Assembly here have Attempted most unreasonably to crush and
destroy us. I thank you for the Service you have done us on this
Occasion, and you may depend on the Warmest Zeal on my part to
render every Service to your State, and the many Worthy Individuals
of it, whenever it falls within my Line of Duty, either in the station
I have now the Honor to fill, or as an Inhabitant of Pennsylvania.
I am, Sir, with the highest respect,

Yr much Obliged humb. St,

Thomas Willing, Presdt.

A copy of the above letter is to be found among the archives of the
bank.

THE BA AH OF NORTH AMERICA.

69

actually contemplate, d the removal of the bank to
Wilmington, New Castle, or some other proper
point within the State of Delaware.

It was deemed wisest, however, before taking so
desperate a step, and one which in all probability
would interfere so materially with the prosperity
and usefulness of the bank, to make every effort to
induce the Assembly of Pennsylvania to recon¬
sider its late action.

Accordingly, shortly after the reassembling of
that body on March 3, 1786, a petition, signed by
no less than 624 citizens of Philadelphia County,
was presented and read, praying for an imme¬
diate repeal of the act rescinding the charter of
the bank. The petitioners recited again at great
length the former services of the institution to the
Government and to the public, and insisted that
the late proceedings of the Assembly were unjust
and arbitrary in the extreme. They pointed out
the haste with which the measure had been carried
through the House, showed that the public had had
no fair opportunity of canvassing its merits, urged
that the bank should at least have been permitted
to adduce evidence with respect to the charges that
had been preferred against it, and finally, denied
that those charges were actually true.

Petitions of like purport coming in daily, the
matter was referred to a committee, whose report
was taken up for discussion on March 29. It

1 786

Journal of
Assembly,
March 3,
1786.

The commit¬
tee reported
March 23,
1786. See
Journal of
Assembly,
eo die.

70

A HISTORY OF

1786

Journal of
Assembly,
March 29,
1786.

revealed with great distinctness tlie motives by
which the House had been actuated at the former
session. It showed that neither the committee of
investigation nor any of the prominent supporters
of the bill had any practical acquaintance with the
method of conducting the bank’s operations. Al¬
though offered by the directors every facility, they
had declined to make any inquiry into its affairs,
or even to come within its walls, but had been
guided wholly, as the committee thought, by gen¬
eral preconceived notions, and according to the
current of popular opinion rather than by the dic¬
tates of sober reason. It was further the opinion
of the committee that the former House had too
much disregarded the ordinary legislative forms
and delays, that it should have proceeded with far
greater caution in so important a matter as the
divesting of chartered rights, and that the result
of its conduct was a measure which the committee
conceived to have “ its foundations deeply laid in
injustice, and to remain a reproach both to the
Government and the peo2>le.” It then called at¬
tention to the eminent respectability and intelli¬
gence of the present petitioners, and concluded
by recommending that a committee should be at
once appointed to bring in an act repealing the
obnoxious measure.

A very warm debate ensued, and lasted for
three days. The petitioners for a reconsidera-

THE BANK OF NORTH AMERICA.

71

tion of the repealing act now amounted to nearly
three thousand, and the supporters of the bank
felt a corresponding encouragement. Messrs. Mor¬
ris, Robinson, Clymer, and Fitzsimons were the
chief advocates of the institution. Messrs. White-
liill, Findlay, Lollar, and Smiley its principal
opponents. On the second day of the debate
Robert Morris rose, and, in a speech of consider¬
able length and consummate ability, defended the
management from the charges of favoritism which
had been made against them and demonstrated
the value of their services to the Government and
the community.

“ I have,” said he, “ a perfect and thorough
conviction that the institution in its operation,
far from being injurious to the State, is of service
to every individual in it. It promotes the gran¬
deur of the State, increases its wealth, and adds to
its dignity.”

But the drift of popular prejudice was still too
strong. On April 1 the House divided upon the
question whether it should accept the report, and
the decision was in the negative by a vote of 41 to
27. The minority unanimously entered their dis¬
sent upon the minutes, and a few days after brought
forward a resolution looking to the suspension of
the repealing act. But this also met with no
favor, and for the remainder of the session the
matter was allowed to drop.

1 78G

Debates and
Proceedings
of the Gen¬
eral Assem¬
bly of Penn¬
sylvania on
the Memo¬
rials praying
the Pepeal or
Suspension of
the Law an¬
nulling the
Charter of
the Banlj.
Matthew
Carey, Edi¬
tor. Phila¬
delphia,

1786, 33.

Journal of
Assembly,
April 1,
1786.

Ibid., April
7, 1786.

72

A HISTORY OF

178G

Journal of
Assembly,
November
16, 1786.

Ibid., No¬
vember 29,
1786.

Ibid., De¬
cember 13,
1786.

Ibid., De¬
cember 15,
1786.

In November the Assembly again came to¬
gether, and the subscribers to the bank again
presented a memorial praying the House to re¬
consider its hasty and ill-advised action, setting
forth anew with tedious minuteness the same ar¬
guments which had been before so often urged.
Their efforts were at length to be crowned with
success. The memorial was referred to a com¬
mittee, who, on November 29, presented their
report, as follows :

“That it is consistent with the policy of the
Government immediately to revive the charter of
the bank, but as this charter, altogether unlimited
in duration, and almost so in the capital stock
allowed to be employed, may from these circum¬
stances become an object of jealousy and appre¬
hension, your committee are of opinion that it
might be expedient to qualify it, in its revival, in
these respects, but in such manner as that, while
all reasonable ground of objection to an institution
so eminently useful to the commerce and agricul¬
ture of the State is removed, the bank shall remain
uninjured in its essential rights, and be left freely
to its own operations.”

On December 13 a committee was appointed to
draw up a bill such as was recommended. On the
loth the bill was introduced, and, in spite of some
opposition and numerous memorials against its
passage, reached by the middle of March, 1787,

THE BANK OF NORTH AMERICA.

73

its final stages. On the 17th of that month it was
finally agreed to by a vote of thirty-five to twenty-
eight.

O

The terms of the new charter differed mate¬
rially from those which had preceded it. The
corporate existence of the bank was limited to a
term of fourteen years, and its wealth restricted to
two million of dollars. It was forbidden to hold
real estate, except in so far as was necessary for
the transaction of its business and the prevention
of loss on its investments. It was expressly pro¬
hibited from trading in any merchandise, save
bullion and bills of exchange. Finally, it was to
cause copies of all its by-laws, as passed from
time to time, to be deposited with the State
authorities.

Although far from satisfied with the provisions
of the bill, the directors of the bank conceived it
best to act under its provisions, a step which, as
will be seen hereafter, certainly sacrificed whatever
rights they may have previously obtained from
Congress.

The bank may now be fairly said to have passed
through the most critical period of its existence.
Peace had for some time been re-established, and
the disastrous effects of the war were at least in
some measure beginning to disappear. A danger¬
ous and turbulent opposition had been successfully
overcome, and the utility of the institution thor-

1787

Journal of
Assembly,
March 17,
1787.

Act of March
17, 1787.

2 Dallas’
Laws, 499.

1788

74

A HISTORY OF

1788 oughly demonstrated. Its notes continued to cir¬
culate at their full value, the difficulties that had
environed it vanished, and all fears respecting its
ability to redeem its promises subsided.

Encouraged by its success, two other banks —
one in New York,1 the other in Boston2 — had
already sprung into existence. In 17913 a fourth
was established at Providence, and in 17954 a fifth
at Baltimore. The banking system had obtained
a foothold in the country.

1 The Bank of New York began business in 1784, but was not char¬
tered till March 21, 1791.

2 The Bank of Massachusetts was chartered February 7, 1784.

3 The Providence Bank went into operation in October, 1791. 5

Collections of Historical Society of Rhode Island, 357.

4 Scharf’s Chronicles of Baltimore, 260.

^^T/ie President, Directors C©
te cT/it/ Company of the Bank re A
et-^; of North-Ainericaproiuisc Ay
to pay to the Bearer, on =
4©1? demand, One Ninetieth of< A
8'^ a Dollar „ D

f®> August S, iy8g. p*
fTendi Grind'S) Cajhier. re'J^

*»*?*&?# v£.

THREE PENCE Specie. |

ajTfae President, Directors aibd j34.
Company of jfoe dank of Non!
America pEorrbife to pay to rfjC
Bearer, orb Dem>aibd, I HREE
NINETIETHSofaDOLLAR.

Auguji 6, 1789. A
Tench Francis, Cajhier.

iJSJ ^THREE V E N C \TSpecie ■ JPgA

£§

^ 0«e PENNY Specie .

*, ss

5% <3

. Printed by R. F. BACHE, Philadelphit. _

THE BANK OF NORTH AMERICA.

75

CHAPTER V.

1789-1809.

The Constitution of the United States goes into effect in March,
1789 — Hamilton’s Treasury Report of 1790 — Reasons for the
Establishment of the Bank of the United States — The Bank
of North America unable and unwilling to discharge the
Functions of such an Institution — Resignation of Thomas
Willing as President in 1792 — Election of John Nixon as
President — Business of the Bank in 1792 — Establishment of
the Bank of Pennsylvania in 1793 — The Whiskey Insurrec¬
tion of 1794 — Business of the Bank in 1794 and 1795 — The
Yellow Fever of 1798 — Temporary Removal of the Bank to
Germantown — Renewal of the Charter in 1799 — Increase in
the Number of Banking Institutions — Reform in the Bank’s
Method of transacting Business effected in 1806 — Establish¬
ment of the Surplus Fund in 1809 — Death of John Nixon
and Election of John Morton as President in 1809.

In March, 1789, a great and fortunate change
took place in the management of public affairs.
The Constitution of the United States went into
operation. A vigorous, responsible executive was
conferred upon the country, and an incredible im¬
pulse given to all schemes of national importance.
Among those now called upon to take part in
the administration of public affairs was Alexander
Hamilton. Placed in charge of the Department

1789

76

A HISTORY OF

1789

1790

Treasury Re¬
port of 1790.
Hamilton’s
"Works, vol.
iii. 126.

of the Treasury, lie found before him the pro¬
digious task of settling the financial affairs of the
United States upon a sure and satisfactory basis.
Towards the attainment of this end no measure
seemed more important to him than his old and
favorite one for the establishment of a great na-
tional bank. Without loss of time he devised a
plan for such an institution, which seemed to him
practicable, and in 1790 spread before Congress
the result of his labors.

The proposed measure met generally with pop¬
ular applause, but there were some who doubted
its wisdom. Among other difficulties that were
thrown in its path was a suggestion that a new
bank was quite unnecessary, since an institution
was in existence which owed its origin to national
bounty, and which had already, upon more than
one occasion, manifested both its readiness and
ability to extend a helping hand to the Govern¬
ment. With this objection Hamilton dealt most
courteously.

“ The aid afforded to the United States,” said
he, “ by the Bank of North America during the
remaining period of the war was of essential con¬
sequence, and its conduct towards them since the
peace has not weakened its title to their patronage
and favor. So far its pretensions to the character
of a national bank are respectable, but there are
circumstances which militate against them, and

THE BANK OF NORTH AMERICA.

77

considerations which indicate the propriety of an
establishment on different principles.

“The directors of this bank, on behalf of their
constituents, have since acted under a new charter
from the State of Pennsylvania, materially variant
from their original one ; and which so narrows the
foundation of the institution as to render it an
incompetent basis for the extensive purposes of a
national bank. . . .

“ There is nothing in the acts of Congress which
imply an exclusive right in the institution to which
they relate, except during the time of the War.
There is, therefore, nothing, if the public good re¬
quire it, which prevents the establishment of an¬
other. It may, however, be incidentally remarked,
that in the general opinion of the citizens of the
United States, the Bank of North America has
taken the station of a bank of Pennsylvania only.
This is a strong argument for a new institution, or
for a renovation of the old, to restore it to the situ¬
ation in which it originally stood in the view of
the United States. But . . . there may be room
to allege that the Government of the United
States ought not, in point of candor or equity, to
establish any rival or interfering institution in
prejudice of the one already established, especially
as this has, from services rendered, well-founded
claims to protection and regard.

“The justice of this observation ought, within

10

1700

78

A HISTORY OF

1790 proper bounds, to be admitted. A new establish¬
ment of the sort ought not to be made without
cogent and sincere reasons of public good. And,
in the manner of doing it, every facility should be
given to a consolidation of the old with the new,
upon terms not injurious to the parties concerned.
But there is no ground to maintain that in a case
in which the Government has made no condition
restricting its authority, it ought voluntarily to re¬
strict it, through regard to the interests of a par-
ticular institution, when those of the State dictate
a different course ; especially too after such circum¬
stances have intervened, as characterize the actual
situation of the Bank of North America. . . .

“ If the objections, which have been stated, to
the constitution of the Bank of North America,
are admitted to be well founded, they will, never¬
theless, not derogate from the merit of the main
design, or of the services which that bank has
rendered, or of the benefits which it has produced.
The creation of such an institution, at the time it
took place, was a measure dictated by wisdom. Its
utility has been amply evinced by its fruits. Amer¬
ican independence owes much to it, . . .

“ The Secretary begs leave to conclude with this
general observation, that if the Bank of North
America shall come forward with any proposi¬
tions, which have for their object the ingrafting
upon that institution the characteristics which

THE BANK OF NORTH AMERICA.

79

shall appear to the Legislature necessary to the
due extent and safety of a national bank, there
are, in his judgment, weighty inducements to
giving every reasonable facility to the measure.
Not only the pretensions of that institution, from its
original relation to the Government of the United
States, and from the services it has rendered, are
such as to claim a disposition favorable to it, if
those who are interested in it are willing, on their
part, to place it on a footing satisfactory to the
Government, and equal to the purposes of a bank
of the United States ; but its co-operation would
naturally accelerate the accomplishment of the
great object, and the collision, which might other¬
wise arise, might, in a variety of ways, prove
equally disagreeable and injurious. The incor¬
poration and union here contemplated may be
effected in different modes, under the auspices of
an act of the United States, if it shall be desired
by the Bank of North America, upon terms which
shall appear expedient to the Government.”

As far as can be ascertained, however, the man¬
agement of the bank took no steps in accordance
with the suggestions of the report. The quiet and
prosperous business in which they were engaged,
under State auspices, was to them preferable to
the anxieties and hazards which would probably
attend the new national undertaking. The scheme
of a separate institution was, therefore, rapidly

1790

Treasury Re¬
port of 1790.
Hamilton's
Works, vol.
iii. 126.

1791

80

A HISTORY OF

1791 pushed forward, and on February 19, 1791, the
lirst Bank of the United States began its corporate
existence.

1792

The Bank of North America now sustained a

serious loss in the resignation of its president, Mr.
Willing, on January 9, 1792, after a term of ser¬
vice extending over a little more than ten years.
He had been chosen to preside over the affairs of
the Bank of the United States, a station for which

it was justly supposed that his talents and experi-
ence eminently qualified him. He was succeeded

in office by John Nixon, an almost equally well-

known and respected citizen. Born in 1733 of
Irish parentage, Mr. Nixon for a number of years
did a prosperous business in the city of Philadel¬
phia. He was one of the many signers of the
Non-Importation Resolutions, and upon the break¬
ing out of the Revolution made himself prominent
by his strenuous efforts and warm interest in the
national cause. He was a member of the Com¬
mittee of Safety, and had the honor of first jn-o-
elaiming to the citizens of Philadelphia the Dec-

An interest- taxation of Independence. During some portion

ing sketch of L o i

I'1® calAr of of the war he did active service, with the rank of

.JonnJNixon

will be found
in the “ Cen¬
tennial Col¬
lection.” 1
Pennsylva¬
nia Magazine
of History
and Biog¬
raphy, 188.

colonel, in the Continental army. He was one of
the original subscribers to the bank, and had been
a director since 1784. He retained the office of
president for seventeen years until his death, which
occurred on December 24, 1808.

PRESIDENT OF THE BANK OF NORTH AMERICA
1792-1808.

THE BANK OF NORTH AMERICA.

81

Meantime, the business of tlie bank was rapidly
increasing as the commerce of the country grew.
The profits were so great that annual dividends of
twelve per cent, were paid to the various stock¬
holders. Nor did the institution cease to accom¬
modate the public from time to time with loans
of considerable extent. During the year 1791 the
bank advanced to the Commonwealth, at different
times, in all $1(10, 000, and in the following year
something over $53,000.

In 1793 the State made some overtures to the
bank, with a view of becoming a participant in its
business and profits, but a satisfactory arrange¬
ment, it was found, could not be concluded. The
result of these negotiations was the establishment
of the first rival institution with which the Bank
of North America had to contend on its own
ground. The State authorities, having been un¬
successful in their application to the old bank for
an interest in its dealings, now obtained from the
Legislature a charter for an entirely new insti¬
tution, known as the Bank of Pennsylvania, in
which the Commonwealth was interested to the
extent ot a million of dollars. By a clause in the
act of incorporation the stockholders of the Bank
of North America, upon relinquishing their char¬
ter, were at liberty to embark their whole capital
in the new undertaking. But of this permission
they declined to avail themselves.

1792

Directors’
Minutes,
August 16,

1792, also
Stockhold¬
ers’ Minutes,
January and
February,

1793.

1793

Act March
30, 1793. 3
Smith’s
Laws, 97.

Stockhold¬
ers’ Minutes,
May 28,

1793.

82

A HISTORY OF

1794

Directors’
Minutes,
September
15, 1794, and
December 8,
1794.

Ibid., Jan¬
uary 12,

1795.

1795

Ibid., De¬
cember 31,

1796.

1798

Iii 1794, the Whiskey Insurrection, which for
three years had been going on in the western part
of the State, reached its climax. In the fall an
army of 19,500 men was sent against the insur¬
gents, to whose equipment there is reason to think
the hank materially contributed. The notes of all
persons actually on military service were by the
bank on application laid over or renewed, nor was
any demand made for their payment until the
conclusion of peace.

During the year 1794 the business of the bank
increased to an unprecedented extent. The whole
amount of the year’s debits and credits exceeded
240 millions, and the amount of cash received and
paid, as entered in the cash-book, 120 millions, ex¬
clusive of several millions passing in exchange with
other banks, and also of large sums of gold and
silver exchanged for notes, and of notes exchanged
for sp>ecie, not appearing on the books. During
the following year the transactions were even
larger, the books showing that the amount of cash
received and paid was more than 121 millions.

In the summer of 1798 the prevalence of the
yellow fever caused the bank to alter the site of
its operations. So disastrous were the ravages of
the disease in the neighborhood of the banking-
house, that by September it was thought unsafe
for the clerks to attend to their daily duties. On
September 3 a meeting of the directors was accord-

THE BANK OF NORTH AMERICA.

8

iiurlv convened at the cashier’s house in the North-
ern Liberties, in such liaste that the minute-book
was forgotten, being left behind in the bank, and
it was resolved immediately to transfer the busi¬
ness to Germantown.

For this purpose the Union School-House was
leased in common by the Banks of North Amer¬
ica and Pennsylvania, and on the 6th instant the
former moved into its new quarters. Here the
transactions of the bank were carried on for
nearly two months. Meantime, the distress in
the city was incredible. Multitudes died, business
was to a large degree suspended, and the poor
were reduced to the greatest straits by the lack
of employment. The bank advanced $10,000 in
aid of the sufferers, which proved of material
assistance. By November 2 the malady had so
far subsided that the bank was enabled to resume
its business in town.

In 1801 the charter of the bank expired. By
this time, however, the Legislature had come to
appreciate somewhat more fully the value of the
institution, and there was, therefore, but little
trouble in procuring a renewal of its corporate
franchises for a further term of fourteen years.
This was effected by an act of Assembly approved
March 20, 1799.

T1 le bank now continued its business for several
years under auspices less favorable than before.

1798

Directors’
Minutes,
September 3
and 0, 1798.

Ibid., Sep¬
tember 10.
1798.

Ibid., No¬
vember 2,
1798.

1801

3 Smith’s
Laws, 359.

84

A HISTORY OF

1804

Observations
on the Prin¬
ciples and
Operations of
Banking,
with .Stric¬
tures on the
Opposition to
the Bank of
Philadel- ‘
phi a, 1804,

16.

1806

The number of banks in the country had greatly
increased. By 1804 it was estimated that there
were forty-five in active operation. Trade and
commerce had received an immense impetus, and
the methods of doing business were rapidly and
materially altered. The Bank of North America
was under a management too conservative to keep
pace with these innovations, and, as a consequence,
by 1806 its profits were sensibly decreased.

A committee appointed to make investigation into
the causes of this decline reported that it was to
be attributed to a variety of circumstances. In the
first place, the policy of the bank had for the past
few years been such as to prevent it from partaking
in any great degree of that patronage from the Gen¬
eral and State Governments which other. banks
enjoyed. In addition to this, it appeared that for
many years the directors had been in the habit
of discounting large amounts of accommodation-
paper, which they renewed from time to time, as a
matter of course, thus making a great part of the
bank’s capital comparatively inoperative. Nor was
the benefit of these loans shared at all equally by
the mercantile community. On the contrary, the
accommodation was afforded almost exclusively
to a few favored individuals, who were familiar
with the character of the bank’s operations.

A vigorous attempt was made to do away with
these evils by the speedy adoption of measures of

PRESIDENT OF THE BANK OF NORTH AMERICA
1809-1822.

THE BANK OF NORTH AMERICA.

85

reform. Credits were shortened, the punctual col¬
lection of debts more rigorously enforced, discounts
upon accommodation-paper at long dates rejected
in favor of investments which promised more profit
and less delay, and the advantages to be derived
from the use of the capital thus more generally
thrown open to the mercantile world.

So successful were these efforts that within a
few years the bank regained all its former pros¬
perity. By the close of 1809 it was enabled to
begin a surplus fund by the laying aside of
$15,000 of the profit and loss account. To this
was added $27,400, a sum realized from the sale
of some of the bank shares which had not before
been subscribed for. Others of these shares were
now sold, enough to make the sum in all of
$80,000, and it was agreed that the annual in¬
terest on this amount should be accumulated until
the fund reached $100,000.

The year 1809 was also marked in the history
of the bank by the election of a new president.
John Nixon died on December 24, 1808, and, at
the first meeting held by the incoming board of
directors for the year 1809, John Morton was
unanimously elected in his place.

1800

Directors’
Minutes,
November
17, 1806.

1809

Ibid., De¬
cember 18,
1809.

Ibid., Jan¬
uary 10,
1809.

11

86

A HISTORY OF

CHAPTER VI.

1810-1846.

Expiration of the Charter of the First Bank of the United States
— The Bank of North America Petitions Congress for the Re¬
newal in 1810 — Failure to obtain a Renewal from Congress —
The War of 1812 — Assistance afforded by the Bank to the
Government during the War — The Panic of 1814 — Policy of
the Bank during the Panic — Renewal of the Bank’s Charter in
1814 — Establishment of the Second Bank of the United States
— End of the Panic in 1817 — Resignation of .John Morton
from the Presidency in 1822 and Election of Henry Nixon
in his place — Renewal of the Charter in 1825 — Terms of the
New Charter — Sale of the Bank Shares in 1825 — Efforts to
obtain a Renewal of the Charter of the Second Bank of the
United States in 1832 — Attitude of the Bank of North Amer¬
ica — Failure of the Efforts — -Change in the Method of Trans¬
acting the Bank’s Business between 1830 and 1835 — The
Congressional Charter Null and Void — Failure of Efforts to
obtain an Increase of the Capital Stock in 1835 — The Panic
of 1837 — Suspension of Specie Payments — -Policy of the Bank
of North America — Death of Henry Nixon in 1840, and Elec¬
tion of John Richardson as President — Resumption ot Specie
Payments in January, 1841 — Failure of the Bank of the
United States in February, 1841— Renewed Suspension ot
Specie Payments — The “Relief Act” of May 4, 1841 — Re¬
fusal of the Bank of North America to accept its Terms —
Views of the Bank as to Resumption — Resumption effected
in March, 1842 — Dangerous Position of the Bank in 1842 —

THE BANE OF NORTH AMERICA.

87

Reduction of its Capital in 1843 — Restoration of the Capital
to its old Volume in 1845 — Renewal of the Charter in 1846 —
Provisions of the New Charter.

In 1810, the charter of the first Bank of the
United States being about to expire, a bill was in¬
troduced into Congress providing for its renewal.
The measure had many advocates, but more deter¬
mined opponents. In December, the fate of the
bill being very doubtful, a host of memorials and
petitions flowed in from all sides both for and
against its passage. The directors of the Bank of
North America strongly urged the necessity of the
renewal. They transmitted to Congress a memo¬
rial, averring that in their opinion the termination
of the national bank’s operations would be attended
with great suffering on the part of the commercial
and agricultural interest, both on account of the
rapid collection of debts necessary to wind up its
affairs, and the loss of so valuable an institution.
The citizens of Pennsylvania, in particular, they
represented, would suffer great distress. They
were borrowers from the bank to a large amount,
and owned fully a million of its capital stock ;
their sacrifices must therefore be enormous if the
charter were allowed to expire. Finally, the peti¬
tioners pointed out the past services of the insti¬
tution, and expressed serious apprehensions as to
how the commerce of the country was to be car¬
ried on without its co-operation and assistance.

1810

Directors’
Minutes,
December 31,
1810.

88

A HISTORY OF

1811

1812

Goddard’s
History of
Banking In¬
stitutions in
Europe and
America, 129
et seq.

Directors’
Minutes,
July 26,

1815.

1813

Ibid., March
21, 1813.

Ibid., April
27, 1812,

May 15 and
June 19,
1815.

1814

But, notwithstanding all argument, the bill was
thrown out by the House. A similar one failed in
the Senate, and on March 4, 1811, the first Bank
of the United States ceased to exist.

In 1812 war was declared with Great Britain.
The Government at once had recourse to loans to
support the army and navy, depending principally
upon the banks to supply these, as well as to assist
in promoting the circulation of the Treasury notes.
The Bank of North America was prompt to afford
assistance in both directions. It received and cir¬
culated the Government notes, opened subscrip¬
tion-books in its bankine-room to the United

o

States loan of 1813, and advanced to the Govern¬
ment in all about $650,000 before the close of
1815, besides affording material aid to the defence
of the city.

In common with the other banks, it suffered
severely from the disastrous system of over-issues
and excessive trading into which the country then
plunged, and in August, 1814, it was finally
forced with them to suspend the payment of
specie.

In the conferences which were now held be¬
tween the various Philadelphia banks, the Bank
of North America took a leading part. It advo¬
cated from the first a more decisive and consistent
line of policy than any other bank, advising the
immediate contraction of issues and cutting down

THE BANK OF NORTH AMERICA.

80

of discounts, so as to insure resumption at an early
and definite day. But it was not until February
20, 1817, and then largely through the assistance
of the second Bank of the United States, which
had in the mean time been chartered, that the
banks found themselves strong enough to accom¬
plish this result.

In the year 1813, the period stipulated by the
bank’s charter having nearly expired, application
had been made to the Legislature for a further ex¬
tension. But this was not to be had on very favor¬
able terms. On March 28, 1814, an act was finally
approved which renewed the bank’s chartered ex¬
istence for a term of ten years. In addition to the
limitations of the former charter several new ones
were now inserted. The capital was restricted to
one million of dollars, and no stock was to be
transferred to or held by aliens, except citizens of
Holland. Its affairs were at all times to be open
to Legislative scrutiny. In addition to this, the
bank, as a consideration for its franchise, was to
pass $120,000 to the credit of the State upon its
books, and the Legislature was to be at- liberty at
any time to annul the charter on refunding a pro¬
portional part of this bonus. At a meeting of the
stockholders held May 11, 1814, the charter was
formally accepted, and the stipulated sum was
shortly after paid to the State.

A period now ensued of tolerable commercial

1834

Directors’
Minutes,
September 4
and October
19, 181-5.

Ibid., Feb¬
ruary 3, 181 7.

Ibid., No¬
vember 2,
1812.

Act, March
28, 1814.
Pamphlet
Laws, 281.

Stockhold¬
ers’ Minutes,
May 11,

1814.

90

A HISTORY OF

1822

Directors’
Minutes,
January 15,
1822.

1825

Directors’
Minutes,
January 24,
1825.

prosperity, during which the bank did a fair aver¬
age business. In 1822, John Morton resigned the
office of president, and was succeeded by Henry
Nixon, son of John Nixon, the second president
of the institution.

In 1825, the charter being again about to expire,
application was again made to the Legislature for
its renewal. The directors desired, if possible, to
secure to the corporation the right to hold real
estate, which was withheld by the former char¬
ter, and to have the clause authorizing inves¬
tigation into the bank’s affairs by the Legislature
omitted, but in neither of these respects were they
successful.

The new charter, indeed, which was approved
March 21, 1825, imposed a variety of new limita¬
tions and qualifications upon the corporate powers.
The title of the corporation was now for the first
time changed to “The Bank of North America.”1
The debts incurred were never to exceed twice the
amount of the capital, and, in case they did, the
directors consenting to such excess were to be per¬
sonally liable. The discounts were never to exceed
the rate of one-half per cent, a month. Dividends
were invariably to be declared at least once in the
year. In case of the non-payment of specie, a

1 Its title had theretofore been “ The President, Directors, and Com¬
pany of the Bank of North America.” See ante, page 85.

PRESIDENT OF THE BANK OF NORTH AMERICA
1822-1840.

THE BANK OF NORTH AMERICA.

speedy method was provided for the forfeiture of
the charter. In such event, at any rate, no new
notes were to he; issued, except to depositors of a
corresponding amount of specie. Not only was
the Legislature to he at full liberty to investigate
into the hank’s affairs, hut at stipulated intervals
a carefully prepared statement of its accounts was
to he submitted to the State authorities. Upon
these terms the bank was incorporated anew until
April 1, 1847, with the usual corporate franchises.
It was to pay as compensation eight per cent, per
annum of its dividend to the Commonwealth, and
was also to loan, on sixty days’ notice, at any time,
a twentieth part of its paid in capital to the State,
at the rate of five jier cent. The hank accepted
the new charter, and continued business under its
provisions.

In September, 1825, the directors resolved to
dispose of the shares in the bank which the insti¬
tution itself still held, so as to increase the capital
to the chartered limit of one million of dollars.
In this way 414 shares were sold, which were worth
at par $165,600, and which, being disposed of at
their market value, brought the bank in a profit of
over $33,000.

About the year 1830 began the contest relative
to the renewal of the charter of the second Bank
of the United States. In 1832 the stockholders of
that institution declared their intention to apply to

91

1825

Act, March
21, 1825. 8
Smith’s
Laws, 386.

Directors’
Minutes,
June 16,
1825.

Ibid., Sep¬
tember 19,
1825.

Ibid., June
27, 1825 ;
June 30,
1825; Octo¬
ber 6, 1825.

1830

1832

92

A HISTORY OF

1832

Directors’
Minutes,
January 5,
1832.

Congress for an extension of their corporate exist¬
ence. In this step they were warmly seconded by
the management of the Bank of North America.
“We are ready,” said they, “to acknowledge, and
we do so with great pleasure, that the Bank of the
United States has hitherto accomplished the objects
for which it was instituted, — in the resumption of
specie payments under the most embarrassing cir¬
cumstances, in the restoration of a sound currency
to the country, in the equalization, as far as prac¬
ticable, of our domestic exchanges, and in afford¬
ing that kind and salutary protection to the State
institutions of a similar character, which has acted
like a balance to the great commercial machine,
affording assistance to the associations acting upon
sound banking principles, and checking the erratic
course of those who, in too great a desire to extend
their profits, might be induced to exceed the bounds
of prudence. . . . We cannot with propriety for¬
bear to express our fears that, unless the Bank of
the United States should be recliartered, we may
witness scenes of unparalleled commercial distress
and embarrassment, which will be felt not only in
the palaces of the rich but in the cottages of the
poor, the enterprising, and the industrious.” They
tendered, therefore, their best wishes for the suc¬
cess of the bank in its application, and declared
their willingness to co-operate with it in any proper
way which would seem likely to effect a result so

THE BANK OF NORTH AMERICA.

93

important to the welfare and prosperity of the
nation.

The measure, though it met with vast opposi¬
tion, passed both Houses of Congress, and was
only defeated by the interposition of the Presi¬
dential veto. The administration, flushed with
this success, now prepared a second and almost
equally crushing blow to the bank’s prospects.
In September, 1833, it suddenly withdrew the
public deposits from the bank’s vaults, and placed
them in the custody of other banks the manage¬
ment of which was more in consonance with Presi¬
dent Jackson’s views. A storm of opposition was
at once awakened. Among others, the Bank of
North America transmitted an indignant memorial
to the members of Congress, praying that they
would order a return of the deposits to the Bank
of the United States “ as a sure mode of restoring
confidence and credit to the community.” Beso-
lutions of this purport were actually passed both
in the Senate and the House, but with no effect on
the persistent opposition of the administration.

During the period intervening between 1830 and
1835 a great change took place in the method of
conducting the bank’s affairs. Business was very
active, a thousand new industries were developing
themselves in all jiarts of the country, and the
need of banking capital was pressing in the ex¬
treme. But the operations of the bank had for

1832

1833

Directors’
Minutes, De¬
cember 19
1833.

1835

94

A HISTORY OF

1835

Directors’
Minutes,
February 11,
1833.

The counsel
to whom the
Congres¬
sional char¬
ter was sub¬
mitted were
James S.
Smith, Esq.,
Horace Kin¬
ney, Esq.,
and John
Sergeant,
Esq.

many years past been carried on upon a limited
scale and by antiquated methods, so that the
directors now found themselves unable to compete
successfully with many of the new banking insti¬
tutions which were growing up around them.
Fortunately, just at this crisis a material change
took place in the board of directors. A number
of gentlemen, who were well advanced in years,
either resigned or died, and their places were siq>
plied by others who were more perfectly acquainted
with the requirements of modern business. Under
their auspices important reforms were speedily in¬
augurated, and the bank soon restored to a promi¬
nent position in the mercantile transactions of the
time.

So extensive was the business now done by the
bank that the directors in 1833 seriously began to
consider the advisability of widening the sphere of
its usefulness by an increase of the capital stock.
The first thought was that perhaps this might
be effected in pursuance of the original Congres¬
sional charter. But the design was soon aban¬
doned. The charter in question was submitted to
eminent counsel for their opinion as to the con¬
tinued existence of the powers conferred thereby.
That opinion was most distinctly adverse. “ We
think,” said the gentlemen consulted, “ that neither
the bank nor the stockholders have any corporate
faculties or capacities but such as are derived from

THE BANK OF NORTH AMERICA.

95

the laws of Pennsylvania, and that no act they can
do can confer or revive tiny other corporate facul¬
ties or capacities.”

Another course was therefore adopted. In De¬
cember, 1835, it W'as resolved to petition the
Legislature to authorize an increase of the capital
Stock to three millions of dollars. It was pointed
out that the charter of the Bank of the United
States would expire in the following March, and
that the demand for banking capital would then
have to be supplied from other sources. Hence
it was argued that the Legislature could entertain
no reasonable doubt as to the utility and propriety
of the proposed extension. So earnest was the
wish of the bank to succeed in this measure that
the president was despatched to Harrisburg, and
there remained for some time in order to “ nurse
the bill.” It failed, however, fortunately for the
bank, to secure the favor of the Legislature.

In the spring of the year 1837 the unparalleled
business prosperity of the past few years ended in
a panic of alarming magnitude. On May 10 the
banks in New York generally suspended specie
payments. On the 11th the banks in Philadel¬
phia were forced to follow their example. The
Bank of North America at once resolved to pub
itself in a fit posture for resumption. Besolu-
tions were immediately introduced into the board
of directors calculated to bring about a constant

1835

Directors’
Minutes,
November
11, 1833.

Ibid., De¬
cember 15
and 31, 1835.

1836

Ibid., Feb. 1
and 8, 1836.

1837

Ibid., May
11, 1837.

96

A HISTORY OF

1837

Directors’
Minutes,
May 15,
1837.

1838

Ibid., May 9
1838.

1839

reduction in the amount of the outstanding loans,
a policy which was steadily persevered in, as far as
the circumstances and capabilities of the borrowers
would warrant.

By May of the year 1838 the city banks felt
strong enough to attempt a partial resumption.
At the recommendation of the convention of bank
delegates they unanimously resolved that on and
after May 9 they would pay all fractional parts of
dollars in checks in coin, and, further, that they
would redeem in coin on presentation all notes
issued by the City and County of Philadelphia,
or by any of the incorporated districts within the
’ county limits.

By July 5, so far had public confidence been
restored, that the loth of the following August
was finally fixed upon as the date when all the
banks would return to a sj^ecie basis. Nor was
there much difficulty, even among the weaker
institutions, in accomplishing this result.

The resumption was, however, only temporary.
At a convention of the delegates of the banks in
Philadelphia, held October 8, 1839, a proposition
was made by the delegates of the Schuylkill Bank
that the city banks generally should again decline
to meet their obligations in specie. The measure
was defeated, by a vote of nine banks to five, the
Bank of North America casting its ballot in the
negative. But the next day notice was received

THE BANK OF NORTH AMERICA.

97

that the Bank of the United States had agreed to
suspend, and that the Philadelphia Bank and the
Farmers and Mechanics’ Bank had followed its
example. The Bank of North America was, of
course, forced to take similar action, though, un¬
like many of the other banking institutions, it
continued to redeem in coin its own notes of a
denomination of $5 or under.

Directors’
Minutes,
October 9,
1839.

1839

On August 18, 1840, Henry Nixon, the presi- 1840
dent of the bank, died. He had served the insti¬
tution for nearly eighteen years. On September ibid., Sep-

tember 3,

8, 1840, John Bichardson was elected to the office, 1840.
the duties of which he continued to discharge for

Meantime, although the banks were generally
preparing to resume, much distress and actual suf¬
fering were entailed on the community by reason
of their suspension.

The banking laws of the State imposed severe
penalties, and prescribed various disabilities, upon
all banks who should fail to meet their oblma-

O

tions in specie. By the terms of the charter of the
Bank of North America that institution was during
the period of its suspension subject at any time to
be deprived of its franchises by proclamation of the
Executive of the Commonwealth, and, in addition to
this, was strictly forbidden to make any new loans,
to declare any dividends, or to issue any of its own Pamphlet
notes, except to depositors who might demand them 85^NVS’ 18"°

98

A HISTORY OF

1840

Pamphlet
Laws, 714.

Directors’
Minutes,
October 21,
1840.

in lieu of tlieir deposits. Somewhat similar pro¬
visions had been inserted in the charters of most of
the other Pennsylvania hanks. It may, therefore,
be readily conceived how great and how well
founded was the prevailing apprehension. Not
only were all the banks liable at one blow to be
swept out of existence, but they were unable to
distribute dividends to their stockholders, advance
loans to their customers, or afford a medium of
exchange for the community, without directly
contravening the provisions of the charters to
which they owed their existence.

The Legislature was, therefore, forced to inter¬
vene. By an act approved April 3, 1*840, the
banks were given until January lo, 1841, to re¬
sume the payment of specie, and until that time
they were exempted from the penalties imposed
upon suspending banks, and enabled to issue their
own notes, to grant loans, and to declare dividends,
provided, however, that the latter did not exceed
six per cent, per annum upon the capital stock.

Towards the close of the year the banks again
began to make preparations to resume. The Bank
of the United States alone seemed unequal to the
task. The other banks of the city therefore ad¬
vanced to it a temporary loan of live millions of
dollars, which it was hoped would rescue it from its
embarrassments. The proportion of this amount
furnished by the Bank of North America was

THE BANK OF NORTH AMERICA.

99

$400,000, and for this sum it was given past-notes,
payable at the expiration of eighteen months.

On January 15, 1841, the city banks generally
complied with the requirements of the act of As¬
sembly, and announced their intention to redeem
all their liabilities in specie. But the favorable
expectations of the community were doomed again
to be disappointed. At the expiration of just three
weeks from the general resumption, the Bank of
the United States a third time suspended, declared
itself unable to meet the demands of its creditors,
and so ended its long and chequered career. Its
assets were found to consist of a great mass of
securities, some worthless, and some, in the dis¬
turbed financial condition of the country, abso¬
lutely inconvertible. Certain of these assets were
placed in the hands of trustees to discharge the
loan of five millions of dollars already mentioned,
but it was many years before their cash value was
realized and the loan entirely repaid.

A meeting of the delegates from the Philadel¬
phia banks was summoned on February 4, to take
into consideration the best course for the banks to
pursue. They recommended the continuance of
specie payments, but the scheme was found im¬
practicable. On the following day every bank in
Philadelphia announced its intention to suspend,
at least to some extent. The Bank of North
America declared itself willing to redeem its five,

1840

1841

Directors’
Minutes,
February 4,
1841.

Deport of
Comptroller
of Currency
of United
States, 1876,
15.

100

A HISTORY OF

1841

Directors’
Minutes,
February 5,
1841.

17 Scribner’s
Monthly
Magazine,
691.

ten, twenty, and fifty-dollar notes in coin, but as
to the rest of its liabilities declined to meet them
in the same manner.

All the distresses and anxieties occasioned by
the stringency of the laws against suspension were
now felt anew. The banks were again rendered
liable to the prescribed penalties, and were in con¬
stant fear of forfeiture of their charters. But few
new bank-notes were put in circulation. Scarcely
any assistance was afforded by the banks to the
mercantile community. Nor could the stockholders
see any reasonable prospect of realizing dividends
from their investments in the capital stock. To
crown all, the credit of the State had begun to
fail. The taxes levied in 1840 had very far fallen
short of the amount necessary to pay the interest
on the State loans. In addition to this there was
a large sum owing for public improvements, which
had been commenced in the prosperous times before
1837, and which were now left, many of them half
completed, a burden in the hands of the Common¬
wealth.

In order to meet these vast expenses the Legis¬
lature enacted a bill, which has generally been
termed the “Belief Act,” the purpose of which
was to extort from the banks of the Common¬
wealth a large advance to the State Treasury. By
the provisions of this act a State loan of three mil¬
lion one hundred thousand dollars was authorized,

THE BANK OF NORTH AMERICA.

101

payable at the expiration of five years, and bearing
interest at the rate of five per cent, per annum.
Any bank in the Commonwealth was to be at lib¬
erty to subscribe to this loan to the extent of sev¬
enteen and a half per cent, of its paid in capital.
Payment was to be made to the State in notes of
the bank to the amount subscribed. As long as
these notes remained outstanding the bank was to
receive from the State interest at the rate of one
per cent, upon the loan. But on presentation of
these notes at the bank a corresponding amount of
the State loan was to be issued to the holder, upon
which the bank was to remain liable for five per
cent, interest until paid. The notes thus issued
were to be receivable for debts due the Common¬
wealth, and could be reissued either from the
State Treasury or from the bank issuing them.

In addition to this, any bank in the Common¬
wealth was enabled, on the deposit of State loan
with the Treasurer of the Commonwealth, to an
amount of not less than five and not more than
seven per cent, of its paid in capital, to issue a like
amount of its own notes, but interest was to be en¬
tirely suspended on the stock so deposited. Any
bank complying with both the foregoing provisions
was relieved and exempted from all penalties and
forfeitures theretofore imposed for suspension of
the payment of specie. If, on the contrary, any

bank should decline within forty days to accept

13

1841

102

A HISTORY OF

1841

Pamphlet
Laws', 307.

both of these provisions, it was declared to remain
subject to all the penalties and forfeitures in case
of suspension provided by existing laws. Gov¬
ernor Porter vetoed this bill, but on its return to
the Legislature more than two-thirds of each
House pronounced in its favor, and on May 4,
1841, it was enacted into a law.

Most of the Pennsylvania banks were only too
glad to purchase immunity on the' stipulated terms.
But in this course they were not followed
Bank of North America, A careful consideration
of the provisions of the act satisfied the manage¬
ment that the bank would have everything to lose
and nothing to gain by their acceptance. One
hundred and seventy-five thousand dollars would
in that event have to be invested in the five per
cent, loan, and at least fifty thousand dollars of
State loan deposited with the Government, In
return, the bank would be at liberty to issue
$225,000 of notes, $175,000 of which would have
to be paid into the Treasury of the State, while
the remaining $50,000 could be paid over the
counter. But little, if any, profit could be ex-
pected from either of these issues. As to the
$50,000, the bank would have to pay live per
cent, interest to the State for the privilege of issu¬
ing it, by reason of the cessation in the payment
of interest on the corresponding amount of State
loan deposited with the Treasurer; and even if

by the

THE BANK OF NORTH AMERICA.

103

the hank should succeed in loaning the whole
amount to customers at the rate of six per cent.,
thus yielding a profit of one per cent., the trifling
sum of $3000 per annum alone would be real¬
ized, from which was to be deducted the expense
of preparing the notes and sustaining them in
circulation.

As to the $175,000, there seemed little chance
of anything but absolute loss. Upon the redemp¬
tion of the notes issued for that sum, the burden
upon the bank must inevitably assume one of two
forms, — either the holding of the five per cent.

loan until repaid, thus abstracting almost one-
fifth of the capital, or else an assumption of an
obligation for the payment of the interest thereon,
thus creating a mortgage of indefinite duration on
the assets of the bank.

“ The banks of this city cannot be justified,”
said the directors, “ in parting with more of their
available means. Causes well known to all have
forced the most prudent of the institutions into a
position which, although we trust not now danger¬
ous, will certainly become so, except under the
guidance of sound discretion in their future coun¬
sels, and will postpone indefinitely a return to
specie payments, to the restoration of which our
aim should be steadily directed, since whatever
inducements any other institutions may have to
render more probable the recovery of heavy loans

1841

104

A HISTORY OF

1841

Directors’
Minutes,
June 8, 1841.

Ibid., June
10, 1841.

Ibid., June
28, 1841.

by a general depreciation of the currency, the in¬
terests of this bank will be best promoted by
maintaining the highest standard compatible with
existing circumstances.”

There were in addition other features of the
act which rendered it peculiarly obnoxious to the
bank. Its constitutionality was not beyond dis¬
pute, nor were the proffered immunities extended
beyond exemption from penalties theretofore en¬
acted.

Much of all that could be gained by compliance
with its terms it was thought the bank would be
allowed, at any rate, from necessity, to enjoy in
common with the loaning banks. Besides, the
directors were of opinion “ that attempts to pro¬
pitiate legislative power by pecuniary sacrifices are
essentially unwise and dangerous, inasmuch as they
invite new aggressions, which will be limited only
by the final inability of the exhausted institutions
to pay the price of further exemption.”

A report embodying the views above set forth
was presented to a meeting of the stockholders
convened on June 10, 1841, and it was finally
agreed by them that the bank should decline to
accept the provisions of the act. A few of the
other city banks adopted the same course, the wis¬
dom of which was speedily justified.

So strong did the Bank of North America now
feel that on June 28 it announced its readiness to

THE BANK OF NORTH AMERICA.

10

pay all of its own notes in specie, on demand. In
order, however, to avoid complications, it soon
after resolved to receive no new accounts, either
from banks or individuals, nor would it accept
more than one thousand dollars in any one day on
deposit from any of its former customers.

By the beginning of the year 1842 the Legisla¬
ture again became uneasy at the continued state
of suspension, and requested the banks generally
throughout the State to furnish information as
to when they deemed resumption practicable.

To this request the directors of the Bank of
North America promptly replied that they had
redeemed all their notes, except about $24,000,
which they would pay on demand in specie ; that
they had few deposits which were not by express
contract payable in current funds ; that their out¬
standing loans were strictly on business paper, in
small amounts ; and that they were prepared to
resume as soon as the currency was raised to the
standard of gold and silver. In order to accom¬
plish this result they ventured to suggest that the
Legislature should take sjieedy steps to raise the
credit of the Commonwealth, so that those banks
which had portions of their capital locked up in
State loan, might convert it at a reasonable rate,
and thus meet their outstanding obligations. They
recommended too, that some method should be
adopted for withdrawing the notes issued under

1841

1842

Directors’
Minutes,
January 20,
1842.

Ibid., Jan¬
uary 25,
1842.

106

1842

Pamphlet
Laws, 08.

Directors’
Minutes,
March 21,
1842.

17 Scribners’
Monthly
Magazine,
091.

A HISTORY OF

the provisions of the “ Relief Act.” Until these
measures were accomplished any attempt to return
to a. specie basis they feared would prove abortive.

To these wise counsels the Legislature paid no
heed. By an act approved March 12, 1842, im¬
mediate resumption was commanded on the part
of every bank in the Commonwealth, without any
provision being made for the payment of interest
on the State loans or the retirement of the “ relief’
notes. As a consequence, great difficulty was ex¬
perienced by many of the banks in complying with
the legislative mandate. On March 18 the Bank
of North America and eight other city banks re¬
turned to a specie basis. But almost every bank
which had accepted the provisions of the “ Relief
Act” was obliged to postpone the period of its re¬
sumption, and it was not until more than a year
after, when provision had been made to replenish
the exhausted Treasury of the State, and to cancel
the notes issued under the “ Relief Act,” that con¬
fidence and credit were in any degree restored to
the mercantile and financial world.

The Bank of North America had suffered most
severely during the period which has just been
described. At the opening of the year 1842 the
president communicated to the directors the fact
that in his opinion the bank stood in a most dan¬
gerous state. It had, in fact, about four-fifths of
its capital locked up in unavailable securities, and

THE BANK OF NORTH AMERICA.

107

consequently only about one-fifth in an actually
available shape. A persistent reduction of accom¬
modation loans, and of the discount line for some
time again ensued as the surest means of restoring
strength to the institution.

As the year went on, however, the disastrous
effects of the late crisis became more and more
apparent. The actual assets of the bank had so
far depreciated in value, the prospects of realizing
any considerable part of the debt due from the
Bank of the United States were so doubtful and
remote, and the profits derived from the current
business were so scanty, that the directors did not
feel warranted in declaring any dividends to the
stockholders. The result was that many persons
were deprived of means absolutely essential to their
support. Application was, therefore, made to the
Legislature to pass an act authorizing the reduc¬
tion of the capital, a measure which it was justly
supposed would enhance the market value of the
stock, promote confidence in the community at
large in the institution, and enable the directors to
declare reasonable dividends. The application was
successful. On March 24, 1843, an act to the de¬
sired effect became a law, cutting down the capital
stock of the bank to $750,000, and reducing the
par value of the shares to $300.

The effect was all that could be desired. In
January, 1842, the half-yearly dividend had been

1842

Directors’
Minutes,
.January 6,
1842.

1843

IbicL, June
20 and 30,
1841; Jan¬
uary 12,
1843.

Pamphlet
Laws, 109.

108

A HISTORY OF

1843

1844

1845

Pamphlet
Laws, 480.

1846

passed, to the great distress of many of the stock¬
holders. In July, 1842, a nominal dividend only
of one cent per share had been declared in order to
prevent a forfeiture of the charter. In January,
1843, the dividend was again passed. In July,
1843, but three months after the passage of the
above-mentioned act, a half-yearly dividend of
three per cent, was declared. In January, 1844,
like action was taken, and by July of that year
the directors felt warranted in distributing four
jier cent, on the capital to the stockholders.

Business meantime was rapidly reviving. Two
years of prosperity availed to place the bank upon
a footing so firm that it felt warranted in asking
for a return of the capital to its old volume. This
was effected by an act of the Legislature approved
April 16, 1845.

In 1846 application was again made for the re¬
newal of the charter. But this was not effected
upon very favorable terms. The Legislature in¬
sisted upon inserting into the new act of incor¬
poration a clause making the stockholders indi¬
vidually liable for the debts of the institution to
an amount equal to the par value of their stock.
Nor was this the only objectionable provision.
If the bank should at any time appear to be in
failing circumstances, a summary method was pro¬
vided for winding up its affairs ; and in the
event of its assets falling below the amount of its

THE BANK OF NORTH AMERICA .

109

capital, the governor was authorized and required
to renew the charter, with a capital correspond¬
ingly reduced.

Another feature of this act was the reduction of
the par value of the shares to $100 each, although
their number was so enlarged as to represent the
full capital of a million of dollars.

This act bore date April 8, 1846, and was ac¬
cepted by the stockholders on January 11, 1847.
By its terms the corporate existence of the bank
was continued for ten years from the expiration of
the former charter.

1840

Act, April
8, 1840.
Pamphlet
Laws, 1847,
30.

1S47

Stockhold¬
ers’ Minutes,
January 11,
1847.

14

110

A HISTORY OF

CHAPTER VII.

1847-1682.

Erection of the present Banking-House in 1847 — Renewal of the
Charter in 1855 — The Panic of 1857 — Resignation of John
Richardson from the Presidency in 1857 — Election of James
N. Dickson, and his Resignation in 1860 — Election of Thomas
Smith as President — The War of the Rebellion — Assistance
afforded to the Government by tbe Bank from 1861 to 1864 —
Loyalty of the Bank — Its Reorganization as a National Bank
in 1864— Retention of its Old Title without the usual Prefix
“National” — Conclusion.

In the year 1847 the old building, in which the
Bank of North America had now transacted its
business for upwards of sixty-five years, was at
length deemed too inconvenient and too ruinous

o

for further occupancy. It had, in fact, never been
very well adapted to the purposes of the bank.
As early as 1784 the directors had discussed the
propriety of removing elsewhere, and upon one
occasion the bank had by the merest accident
escaped the perpetration of a robbery, which the
fragile construction of its walls would have ren-

o

THE BANK OF NORTH AMERICA.

Ill

dered easy.1 It was, therefore, resolved to erect a
new banking-house on the old site better suited to
the requirements of the institution.2

The bank removed on June II, 1847, to tem¬
porary quarters adjoining the Philadelphia Bank,

1 "When Porter, the mail-robber, was arrested, tried, and sentenced
to death for robbing the Beading mail, in December, 1829, be sent for
James S. Smith, Esq., counsel for the bank, and confessed to him that
a plan had been framed for robbing the bank, which would undoubt¬
edly have been put in execution but for his arrest. The method in
which this was to have been accomplished was substantially as
follows :

A narrow alley ran northward from Chestnut Street, on the west
side of the bank, which was at that time patrolled at night by a watch¬
man employed by the bank. Porter and his confederates had, on some
pretence, obtained access to the banking-house during business hours,
and had discovered that the vault wherein the specie was kept was
situate on the western side of the building, backing on this alley.
They found, too, that owing to the miserable construction of the
whole building, but one thickness of brick intervened between the
alley and the vault. Having ascertained the distance of the vault
from the front of the building, they had stepped a like distance in
the alley, and had actually marked that part of the western wall con¬
stituting the back of the vault. Their plan was to seize and gag the
bank watchman at night, to cut through the thin brick wall, and so
possess themselves of the contents of the vault.

Porter refused to divulge who were his confederates, but so accu¬
rate was his knowledge as to the contents of the vault that collusion
with some employe of the bank was suspected.

On hearing this story the directors, of course, at once took steps to
have the western wall so strengthened as to preclude the possibility
of another such attempt.

2 The attention of the directors was forcibly directed to the ruinous
state of the building by the sudden falling of two bricks from the
wall into the president’s room, during business hours, in the early
part of 1847.

1847

Directors’
Minutes,
May 20,
1847.

112

A HISTORY OF

1848

Directors’

Minutes,

May '24, 1847.

Ibid., March
11, 1848.

1855

Act, April
8, 1846.
Pamphlet
Laws, 367.

Stockhold¬
ers’ Minutes,
June 11,
1855.

1857

Directors’
Minutes,
September 25
and 26, 1857.

Ibid., April
27, 1857.

then situate at the southwest corner of Fourth and
Chestnut Streets, and there transacted business for
exactly nine months. At the expiration of that
time the new building, as it now stands, was ready
for occupancy, and on March 11, 1848, its doors
were opened to the public.

On April 26, 1855, the charter of the bank was
again renewed for a period of twenty years, upon
the terms of the act of 1846. The stockholders,
without objection or difficulty, accepted the new
charter at a meeting convened on June 11, 1855.

During the great panic of the year 1857 the
Bank of North America was compelled again for
a while, in common with the other banks of the
country, to suspend the payment of specie. But,
the difficulty was only temporary. The suspen¬
sion began on September 26, 1857, and resumption
was effected by the following spring.

On April 27 of the same year John Bichardson
presented to the directors his resignation from the
position of president, assigning as his reason the
very close confinement necessitated by the duties
of the office. The resignation did not, however,
go into effect until the July following, when the
directors took the opportunity to express their
appreciation of his “ soundness of judgment and
promptness of action, his strict adherence to right
principles, and his zealous, untiring devotion to
the interests of the institution.” “The whole of

PRESIDENT OF THE BANK OF NORTH AMERICA
1857- -I860

THE BANK OF NORTH AMERICA.

113

the long period during which he was in office,”
they declared, “had been marked by the most un¬
interrupted harmony and mutual respect, and, on
the part of the board, by the highest regard for
the excellent qualities of Mr. Richardson as an
officer and a man.”

On July 16, 1857, James N. Dickson was elected
to till the vacancy, but his term of office extended
over little more than three years. On August 9,
I860, he presented his resignation, and on the 20th
of the same month Thomas Smith was chosen as
his successor. Mr. Smith has now been in office
for upwards of twenty-one years, a longer period
than any previous president of the institution.

When the War of the Rebellion broke out, the
Bank of North America was among the first of the
banking institutions of the country to declare its
unabated confidence in and regard for the National
Government. Loyal alike from inclination and
from a profound sentiment of gratitude to the
power that had first brought it into existence, it
hastened to take measures to aid in the preserva¬
tion of the integrity of that National Union which
it had done so much to promote.

On April 22, 1861, the directors, by a unani¬
mous vote, appropriated the sum of $5000 to the
Committee of Public Safety, in order to provide
for the defence of the city and the preservation
of the public peace.

1857

Directors’
Minutes,
July 1G,
1857.

Ibid.

18G0

Ibid., Au¬
gust 9, 1860.

Ibid., Au¬
gust 20, I860.

1 8<J 1

Ibid., April
22, 1861.

114

A HISTORY OF

1SGL

Directors’
Minutes,
May 23,
1861.

Ibid., July
23, 1861.

Ibid., Au¬
gust 17, 1861.

Ibid., Sep¬
tember 25,
1861.

Ibid., No¬
vember 19,
1861.

Ibid., De¬
cember 31,
1861.

18G2

Ibid., Feb¬
ruary 28,
1862'.

Ibid., July 3,
1862.

Iii the following May it agreed, in common with
the other banks of the city, to subscribe for its
pro rata share of United States Treasury notes.
In July it loaned to the United States directly the
sum of $100,000 in coin for sixty days, at six per
cent, interest, agreeing that the advance might be
returned either in kind or in 7.30 notes. In Au¬
gust it subscribed $400,000 for these same 7.30
notes, and in September took its pro rata share of
$50,000,000 on the same security. In November
it subscribed for its pro rata share of $5,000,000
in United States six per cent, bonds.

On December 31, 18G1, the bank was forced, in
common with the other banking institutions of the
country, to suspend the payment of specie. But
this occurrence by no means diminished either its
ability or its disposition to aid the national cause.
On February 28, 1862, it made an advance to the
Treasury of $300,000 at live per cent, interest, on
condition that the amount should be returned on
ten days’ notice, in kind.

On July 3 $300,000 more were invested in
United States securities. On July 28, at a meet¬
ing of the directors, the following resolutions were
unanimously adopted :

Whereas, This bank was instituted in 1781 to
aid the colonies in their struggle for independence ;

And whereas, It has ever since prospered under
the •Government it assisted in creating ;

\

Ep.tMfcnuutgeg

THE BANK OF NORTH AMERICA.

115

And whereas , In carrying out the policy of
making contributions to such objects only as are
within its legitimate sphere, the stability of the
Government is most essential to the interests of
the stockholders ; it is, therefore,

Resolved, That the sum of five thousand dollars
be contributed by the bank, and disposed of in
such manner as the president may deem most ex¬
pedient to assist the Government in maintaining
its integrity.

During the year 1863 the same policy was pur¬
sued. During the month of May the sum of
$600,000 was invested in United States twelve
months’ certificates. In July the sum of $40,000
was loaned to the State to aid in the payment of
its troops. In the same month half a million more
of United States twelve months’ certificates were
taken, and in November the sum of $100,000 was
invested in the United States 7.30 notes.

On January 14, 1864, the president was author¬
ized to advance at proper times still further sums on
the United States twelve months’ certificates, but
the amount of these securities held never exceeded
at any one time a million and a half of dollars. Nor
was the mere advancing of money to the Govern¬
ment the only method which the bank took of tes¬
tifying its patriotism. It advanced at various times
to individuals no less than two millions of dol¬
lars on the deposit of United States securities as

1862

Directors’
Minutes,
July ‘28,
1802.

1863

Ibid., May
18 and 28^
1863.

Ibid., Julv
27, 1863.

Ibid.

Ibid., No¬
vember 2,
1863.

1864

Ibid., Jan¬
uary 14,

1864.

116

A HISTORY OF

1364

Directors’
Minutes,
May 20,

1864.

See Appen¬
dix.

Letter,
Thomas
Smith, Esq.,
President of
the Bank, to
Hon. Hugh
McCulloch,
Comptroller,
etc., Novem¬
ber 1, 1864.
See Appen¬
dix.

collateral. And in order to stimulate the em¬
ployes to volunteer for the national defence, it was
resolved by the directors that the salaries of all
clerks who might be absent on the service of the
State, or of the United States, should be continued
as though no interruption to their daily labors had
taken place.

In October, 18G4, a correspondence was opened
with the Comptroller of the Currency in Wash¬
ington, looking to the reorganization of the insti¬
tution as a national bank, under the “ National
Currency Act,” passed by Congress June 3, 1864.
A step more in keeping with the traditions and
history of the bank it would be hard to conceive.
Created by Congress, and fostered under national
auspices, it was only by the force of circumstances,
and the unfortunate prevalence of the State Rights’
feeling, that it had been forced into the position of
a State institution. It had already given ample
evidence of its loyalty to the national cause. It
had advanced four and a half millions of dollars,
or four and a half times the amount of its capital
stock, on United States securities, and it now em¬
braced the opportunity of resuming its former in¬
timate relations with the National Government.
Much feeling, however, prevailed, both among the
directors and the stockholders, against any change
in the old corporate title of “ The Bank of North
America,” It was felt by them that the addition

THE BANK OF NORTH AMERICA.

117

of the word “National,” as was customary on be¬
coming a national bank, was, in the case of the
Bank of North America, both unnecessary and
ill-advised. Its original national name conferred
upon it by Congress, as well as its original national
character, had always been, and still continue to
be, matters of great pride to those interested in the
institution. These views were presented at great
length to the Comptroller of the Currency in a
letter from the president of the bank, but failed at
first to meet with his approbation.

On November 14, 18(34, the stockholders met
to consider the propriety of becoming a national
bank. The requisite two-tliirds vote approving
the change was readily obtained. It was resolved
that the State charter should be surrendered, that
new articles of association should be executed, that
the bank should reorganize under the provisions of
the act of Congress, and that the assets of the old
corporation should be transferred to the possession
of the new.

These changes were at once effected. In No¬
vember a committee of the directors was despatched
to Washington to deposit the necessary securities,
and immediately after the bank began business in
its new national character.

The result of the correspondence with the Comp¬
troller of the Treasury, already described, was to

induce him at length to consent to the retention by

15

18G4

See Appen¬
dix.

Stockhold¬
ers’ Minutes,
November
14, 18G4.

118

A HISTORY OF

1804

Directors’

Minutes,

N ovember

23, 1864.

18S2

the bank of its old corporate title, without the
prefix “ National.” In this action he was largely
influenced by a memorial signed by the presidents
of most of the other Philadelphia banks, express¬
ing their entire approval of the scheme for leaving
the title unchanged. It is believed that this is
the only instance in the country where a similar
permission was extended.

A century lias now passed away since the Bank
of North America first opened its doors. It has
lived to see a weak confederation of States grow
into a great and prosperous nation. It has wit¬
nessed periods of unbounded commercial prosper-
ity and others of most deplorable distress. But
throughout all it has never failed, by the mainte¬
nance of a sound financial policy, to command the
respect and esteem of the mercantile and financial
world. As long as it retains these it may look
forward with well-grounded confidence to a future
of undiminished prosperity and usefulness.

PRESIDENT OE THE BANK OF NORTH AMERICA
ELECTED IN I860.

THE BANK OF NORTH AMERICA.

119

APPENDIX.

i.

LIST OF THE PRESIDENTS, CASHIERS, AND DIRECTORS OF THE BANK OF
NORTH AMERICA FROM ITS FOUNDATION TO THE PRESENT TIME.

PRESIDENTS.

Name.

Elected.

Term of Office ended.

Thomas Willing . . .

November 2, 1781

Resigned Jan. 9, 1792.

John Nixon .

January

10, 1792

Died December 31, 1808.

John Morton ....

January

10, 1809

Resigned Jan. 15, 1822.

Henry Nixon ....

January 15, 1822

Died August 18, 1840.

John Richardson . . .

September 3, 1840

Resigned July 16, 1857.

James N. Dickson . . .

Thomas Smith ....

July

August

16, 1857
20, 1860

Resigned Aug. 9, 1860.

CASHIERS.

Name.

Elected.

Term of Office ended.

Tench Francis ....

November 26, 1781

January 12, 1792.

Richard Wells ....

January

12, 1792

Resigned Jan. 30, 1800.

Henry Drinker, Jr. . .

January 30, 1800

Died October 19, 1822.

Henry Hollingsworth .

October

30, 1822

Resigned Aug. 31, 1840.

James Correy ....

September 17, 1840

Resigned Feb. 20, 1843.

John Hockley ....
John H. Watt ....

March

May

6, 1843
1, 1S69

Resigned May 1, 1869.

120

A HISTORY OF

DIRECTORS.

Name.

Elected.

Term of Office ended.

Thomas Willing . . .

November 1, 1781

January 9, 1792.

Thomas Fitzsimons . .

November 1, 1781

January 10, 1803.

John Maxwell Nesbitt .

November 1, 1781

January 9, 1792.

James Wilson ....

November 1, 1781

January 12, 1784.

Henry Hill .

November 1, 1781

January 9, 1792.

Samuel Osgood ....

November 1, 1781

January 12, 1784.

Cadwalader Morris . .

November 1, 1781

April 25, 1786.

Samuel Inglis ....

November 1, 1781

January 12, 1784.

Samuel Meredith . . .

November 1, 1781

January 12, 1784.

William Bingham . . .

November 1, 1781

January 12, 1784.

Timothy Matlack . . .

November 1, 1781

November 4, 1782.

Andrew Caldwell . .

November 1, 1781

January 10, 1791.

George Haynes ....

November 4, 1782

January 12, 1784.

Mordecai Lewis . . .

January 12, 1784

January 13, 1800.

John Ross .

January 12, 1784

January 9, 1792.

John Nixon .

January 12, 1784

Resigned Dec. 24. 1808.

Samuel Powel ....

January 12, 1784

January 9, 1792.

Richard Baciie ....

January 12, 1784

January 9, 1792.

JOSIAH HEWES ....

January 12, 1784

Resigned Jan. 10, 1805.

Andrew Tybout . . .

May 29, 1780

January 9, 1792.

Joseph Swift . . • .

January 10, 1791

January 9, 1804.

George Latimer . . .

January 9, 1792

Died June 13, 1825.

Benjamin Fuller . . .

January 9, 1792

January 13, 1800.

Miers Fisher ....

January 9, 1792

January 13, 1800.

John Swanwicic . . .

January 9, 1792

January 14, 1793.

John Morton ....

January 9, 1792

Died April 23, 1828.

Robert Waln ....

January 9, 1792

January 10, 1820.

William T. Smith . . .

January 9, 1792

Died February, 1812.

Richard Rundle . . .

January 14, 1793

January 13, 1800.

Thomas Murgatroyd . .

January 13, 1800

January 13, 1801.

Gideon Hill Wells . .

January 13, 1800

January 10, 1803.

Daniel Smith ....

January 13, 1800

January 7, 1833.

Anthony Morris . . .

January 13, 1800

January 11, 1808.

Jacob Downing ....

January 13, 1801

January 12, 1818.

James Smith, Jr. . . .

January 10, 1803

January 14, 1811.

THE BANK OF NORTH AMERICA.

121

DIRECTOR S -Continued.

Name.

Joseph S. Lewis . .

James Read ....
William Waln . . .

Timothy Paxson . .

IIenky Nixon . . .

Benjamin R. Morgan .
Abraham Ivintzing
George Fox ....
George McCallmont .
Charles McAlester .
Joseph Peace . . .

Jacob S. Waln . . .

George Roberts . .

Edward Penington
Alexander Elmslie .
Richard Randolph
Newman Cope . . .

Coleman Fisher . .

Charles II. Baker
Furman Beaming . .

Samuel Hollingsworth
John Clement Stocker
John M. Attwood . .

Benjamin W. Richards
John Miller, Jr. . .

David Lewis, Jr. . .

George Handy . . .

U ii

William W. Keen . .

CC iC

cc cc

cc cc

John Richardson . .

Richard S. Smith . .

Joseph P. IIomer . .

Elected.

January

9, 1804

January

14, 1805

January

14, 1805

January

11, 1808

J anuary

9, 1809

January

14, 1811

April

1, 1812

January

12, 1818

January

12, 1818

January

11, 1819

January

10, 1820

J anuary

10, 1820

September

7, 1821

January

13, 1823

January

10, 1825

January

10, 1825

January

9, 182G

June

5, 182G

June

5, 1826

July

24, 1828

July

24, 1828

July

24, 1828

January

5, 1829

April

2, 1829

January

5, 1830

April

26, 1830

April

30, 1832

May

26, 1836

November

29, 1832

March

17, 1845

January

6, 1851

January

2, 1855

January

7, 1833

January

7, 1833

October

31, 1833

Term of Office ended.

January 12, 1818.
January 13, 1823.
January 10, 1820.

Died April 21, 1839.
Died August 18, 1840.
Resigned August, 1821.
January 11, 1819.

Died September 9, 1828.
January 7, 1833.

Died August 29, 1832.
Died April, 182G.
Resigned June 23, 1828.
January 10, 1825.
January 10, 1825.
January 12, 1829.
Resigned April 7, 1828.
Resigned March G, 182G.
Resigned Oct. 9, 1843.
Resigned Dec. 21, 1829.
Died March, 1832.
Resigned Jan. 14, 1833.
Died July 29, 1833.
Resigned Oct. 9, 1843.
Resigned Jan. 18, 1830.
Died May 12, 1836.

Resigned - , 1840.

Resigned Oct. 27, 1834.
Resigned Nov. 2G, 1838.
Resigned Oct. 16, 1843.
Resigned Mar. 20, 1848.
January 2, 1854.
January 31, 1859.
January 31, 1859.
Resigned April 17, 1834.
Resigned Aug. 8, 1842.

122

A HISTORY OF

DIRECTOR S.— Continued.

Name.

Elected.

Term of Office ended.

Charles Bird

October

31, 1833

Resigned Oct. 27, 1834.

Jacob Lex . .

October

6, 1834

Resigned Nov. 22, 1838.

Edward Yarnall

November

24, 1834

Resigned Oct. 19, 1843.

CC U

J anuary

8, 1850

January 3, 1853.

cc cc

January

2, 1854

January 5, 1857.

Thomas Bobins

November

27, 1834

Resigned Jan. 30, 1843.

cc cc

July

15, 1844

Resigned July 12, 1847.

cc cc

September

4, 1848

Resigned Sept. 4, 1851.

Thomas Allibone

December

3, 1838

Januai’y 1, 1844.

CC CC

M arcli

19, 184G

Resigned Mar. 19, 1849.

John B. Budd

December

3, 1838

January 1, 1844.

CC CC

J anuary

6, 1845

January 3, 1848.

cc cc

January

1, 1849

January 6, 1852.

cc cc

January

3, 1853

January 7, 1856.

A. J. Lewis . .

September 21, 1840

January 1, 1844.

cc cc

October

26, 1846

Resigned Oct. 25, 1849.

CC cc

November

17, 1851

Resigned Nov. 22, 1854.

cc u

January

7, 1856

January 2, 1860.

CC cc

J anuary

7, 1861

January 4, 1864.

cc u

January

10, 1865

January 14, 1868.

cc cc

J anuary

12, 1869

January 10, 1872.

cc cc

January

14, 1873

January 11, 1876.

cc cc

January

9, 1877

Died May, 1877.

James N. Dickson

September

21, 1840

January 1, 1844.

CC cc

January

3, 1848

January 6, 1851.

cc cc

October

18, 1852

January 7, 1856.

cc cc

January

5, 1857

January 5, 1863.

Thomas M. Smith

January

5, 1841

January 1, 1844.

CC cc

January

6, 1845

January 3, 1848.

cc cc

October

15, 1849

January 3, 1853.

cc cc

January

2, 1854

January 5, 1857.

James C. Hand .

October

31, 1842

Resigned Oct. 30, 1845.

CC CC

J anuary

1, 1849

January 6, 1852.

CC CC

January

2, 1855

January 2, 1860.

CC cc

January

7, 1861

January 4, 1864.

THE BANK OF NORTH AMERICA.

123

DIEEC T O R S. — Continued.

Name.

Elec

TED.

Term of Office ended.

James C. Hand .

January

10, 18G5

January 14, 1868.

CC CC

January

12, 1809

January 10, 1872.

CC CC

January

14, 1873

January 11, 1876.

cc cc

January

9, 1877

January 13, 1880.

cc • cc

January

11, 1881

Stephen Baldwin

June

15, 1843

Resigned Oct. 1, 1846.

CC cc

January

3, 1848

January 6, 1851 .

Morris L. Hallowell

October

12, 1843

Resigned Oct. 8, 1846.

CC CC

October

15, 1849

Resigned Oct. 11, 1852.

cc a

January

2, 1854

January 5, 1857.

cc cc

January

2, I860

January 7, 1862.

John Gregg . .

October

19, 1843

Resigned Oct. 1, 1846.

CC CC

January

8, 1850

Resigned Sept. 1, 1851.

Henry Sloan

October

19, 1843

Resigned Oct. 12 1846.

CC CC

January

3, 1848

January 6, 1851.

cc cc

January

G, 1852

January 1, 1855.

cc u

January

7, 1856

Resigned Dec. 16, 1858.

cc u

January

10, 1871

January 14, 1873.

William S. Boyd

October

27, 1843

Resigned Feb. 12, 1846.

Thomas T. Lea .

January

1, 1844

January 5, 1847.

CC CC

November

5, 1849

January 3, 1853.

CC CC

' January

2, 1854

January 5, 1857.

John Dickson

January

1, 1844

Resigned Jan. 2, 1845.

Benjamin T. Curtis .

November 10, 1845

Resigned Nov. 20, 1848.

CC CC

January

G, 1852

January 1, 1855.

Hugh Elliott .

October

12, 184G

Resigned Oct. 11, 1849.

CC CC

January

3, 1853

Resigned May 16, 1853.

John H. Brown .

October

12, 1846

Resigned Oct. 18, 1849.

CC CC

January

6, 1851

January 2, 1854.

CC CC

January

2, 1855

January 2, 1860.

CC CC

January

7, 1861

January 4, 1864.

CC CC

January

10, 1865

January 14, 1868.

CC CC

January

12, 1869

January 10, 1872.

»c c;

January

14, 1873

January 11, 1876.

CC CC

.

J anuary

9, 1877

January 13, 1880.

124

A HISTORY OF

DIRECTOR S.— Continued.

Name.

Elected.

Term or Office ended.

John H. Brown . .

January

11, 1881

Jacob P. Jones . .

October

12, 184G

Resigned Oct. 15, 1849.

cc cc

November

17, 1851

Resigned Nov. 20, 1S54.

u cc

January

7, 185G

January 2, 1860.

cc cc

January

5, 18G3

January 9, 1866.

cc cc

January

8, 18G7

January 12, 1870.

cc cc

J anuary

10, 1871

January 13, 1874.

cc cc

J anuary

12. 1875

January 10, 1878.

cc cc

J anuary

14, 1879

Paul W. Newhall .

January

5, 1847

Resigned Peb. 17, 1848.

Thomas Smith . .

January

6, 1851

January 2, 1854.

CC CC

J anuary

2, 1855

Resigned Peb. 10, 1859.

cc cc

January

2, I860

Lewis Audenried .

January

3, 1853

January 7, 1856.

cc cc

January

5, 1857

January 7, 1861.

cc cc

January

6, 1862

January 10, 1865.

cc cc

January

9, 186G

January 12, 1869.

cc cc

January

12, 1870

January 14, 1873.

Wm. G. Audenried .

January

13, 1874

January 9, 1877.

CC CC

J anuary

8, 1878

January 11, 1881.

William L. Reiin .

January

5, 1857

January 7, 1861.

CC cc

J anuary

6, 18G2

January 10, 1865.

cc cc

January

9, 1866

January 12, 1869.

cc cc

J anuary

12, 1870

January 14, 1873.

cc cc

January

13, 1874

Resigned Jan. 15, 1874.

John H. Irwin . .

January

5, 1857

January 7, 1861.

CC cc

January

6, 1862

January 10, 1865.

cc cc

January

9, 1866

January 12, 1869.

cc cc

January

12, 1870

Died March, 1 S7 0.

John M. Whitall .

January

31, 1859

January 6, 1862.

cc cc

January

5, 1863

January 9, 1866.

cc cc

January

14, 1868

January 10, 1871.

Charles S. Lewis .

January

31, 1859

January 6, 1862.

cc cc

January

5, 1863

January 9, 1866.

cc cc

January

8, 1867

January 12, 1870.

THE BANK OF NORTH AMERICA.

125

DIREC T O R S -Continued.

Name.

1

Elected.

Term oe Office ended.

Charles S. Lewis . . .

January 10, 1871

January 13, 1874.

a cc

cc i c

January 12, 1875
January 14, 1879

January 10, 1878.

Henry Lewis ....

January 31, 1859

January 6, 1862.

CC CC

January 5, 1863

January 9, 1866.

CC CC

January 8, 1867

January 12, 1870.

CC CC

January 10, 1871

January 13, 1874.

CC Cl

CC cc

January 12. 1875
January 14, 1879

January 10, 1878.

David Scull .

January 2, 1860

January 5, 1863.

11 CC

January 4, 1864

January 8, 1867.

CC CC

January 14, 1868

January 10, 1871.

CC CC

January 10, 1872

January 13, 1875.

Israel Morris ....

January 2, 1860

January 5, 1863.

U CC

January 10, 1865

January 14, 1868.

CC U

January 12, 1869

January 10, 1872.

cc a

January 13, 1874

January 9, 1877.

CC cc

January 8, 1878

January 11, 1881.

James 0. Pease ....

January 2, 1860

January 5, 1863.

CC cc

January 4, 1864

January 8, 1867.

Charles Vezin ....

January 6, 1862

January 10, 1865.

CC u

January 9, 1866

January 12, 1869.

John P. Levy ....

January 4, 1864

January 8, 1867.

Lemuel Coffin ... . .

January 14, 1868

January 10, 1871.

CC cc

January 10, 1872

January 13, 1875.

cc cc

cc cc

January 11, 1876
January 13, 1880

January 14, 1879.

William B. Kempton . .

cc cl

cc cc

cc cc

January 14, 1868
January 10, 1872
January 11, 1876
January 13, 1880

January 10, 1871.
January 13, 1875.
January 14, 1879.

John H. Michener . . .

January 10, 1871

January 13, 1874.

CC cc

cc cc

January 12, 1875
January 14, 1879

January 10, 1878.

Henry Winsor ....

January 10, 1872
16

January 13, 1875.

126

A HISTORY OF

DIRECTOR S.-Continued.

Name.

Elected.

Term op Office ended.

Henry Winsor ....

January

11, 1 87 G

January 14, 1879.

U it

January

13, 1880

Clement A. Griscom . .

January

3, 1874

January 9, 1877.

U a

January

8, 1878

January 11, 1881.

George W. Fiss ....

February

12, 1S74

January 9, 1877.

U u

January

8, 1878

January 11, 1881.

Theodore C. Search . .

January

9, 1877

January 10, 1878.

U u

January

11, 1881

William Simpson, Jr.

May

11, 1877

January 13, 1880.

it it

January

11, 1881

R. H. Downing ....

January

8, 1878

January 14, 1879.

THE BANK OF NORTH AMERICA.

127

II.

On the 17th day of May, 1781, the following Plan was
submitted to the consideration of the United States in Con¬
gress assembled :

PLAN POR ESTABLISHING A NATIONAL BANK FOR THE UNITED STATES

OF NORTH AMERICA.

1st. That a Subscription be opened for four hundred thou¬
sand dollars, in Shares of Four hundred dollars each, to be
paid in Gold or Silver.

2d. That the subscription be paid into the Hands of
George Clymer and John Nixon, Esqrs., or their agents.

3d. That every subscriber of less than five shares pay the
whole sum on the day of his subscription.

4th. That every subscriber of Five Shares, or upwards,
pay one-half the Sum on the day of his subscription, and
the other half within three months of that day.

5th. That every holder of a share shall be entitled to a
vote by himself, his agent, or proxy, properly appointed, at
all Elections of Directors, and that he have as many votes as
he hold shares, and that every Subscriber may Sell or Trans¬
fer his Share or Shares at his pleasure, the Transfer being
made in the Bank Books, in presence and with the approba¬
tion of the proprietor or his Lawful Attorney, the purchaser
then to become entitled to the right of Voting, Ac.

6th. That there be Twelve Directors chosen from among

o

128

A HISTORY OF

those entitled to Vote, who, at their first meeting, shall choose
one as President.

7th. That there he a meeting of the Directors Quarterly,
for the purpose of Regulating the affairs of the Bank, and
seven of the Directors to make a Board, and that the Board
have power to adjourn from time to time.

8th. That the Board of Directors determine the manner
of doing Business, and the Rules and Forms to be pursued,
appoint the various Officers which they may find necessary,
and dispose of the Money and Credit of the Bank for the
Interest and Benefit of the proprietors, and make from time
to time such Dividends, out of the Profits, as they may think
proper.

9th. That the Board be empowered from time to time to
open new subscriptions, for the purpose of increasing the
Capital of the Bank, on such terms and conditions as they
shall think proper.

lOtli. That the Board shall at every quarterly meeting
Choose two Directors, to inspect and control the Business
of the Bank, for the ensuing three months.

1 1th. That the Inspectors so chosen shall, on the evening
of every day, Sundays excepted, deliver to the Superintendent
of the Finances of America a state of the Cash account, and of
the Notes issued and Received.

12th. That the Bank Notes, payable on demand, shall by
Law be made receivable for the Duties and Taxes of every
State in the Union, and from the Respective States, by the
Treasury of the United States, as specie.

13th. That the Superintendent of the Finances of America
shall have a right, at all times, to examine into the affairs of
the Bank, and for that purpose shall have access to all the
Books and Papers.

14th. That any Director or Officer of the Bank, who shall

THE BANK OF NORTH AMERICA.

129

convert any of* the property, monies, or credits thereof, to his
own use, or shall in any other way be guilty of Fraud or Em¬
bezzlement, shall forfeit all bis share or stock to the Company.

15th. That Laws shall be passed making it felony without
Benefit of Clergy to commit such Fraud or Embezzlement.

16th. That the Subscribers shall be Incorporated under the
Name of “ The President, Directors, and Company of the
Bank of North America.”

17th. That none of the Directors shall be entitled to any
pecuniary advantage for his attendance on the duties of his
office as Director, or President, or Inspector, unless an altera¬

tion, in this respect, shall hereafter be made by the consent of
a majority of the Stockholders, at a general election.

18th. That as soon as the Subscription shall be filled, George
Clymer and John Nixon, Esqrs., shall publish a, list of the
names and sums respectively subscribed, with the place of
abode of the Subscribers, and appoint a day for the choice of
Directors, to whom, when chosen, they shall deliver over the
Money by them received.

130

A HISTORY OF

III.

By the United States in Congress assembled, December
31, 1781.

AN ORDINANCE TO INCORPORATE THE SUBSCRIBERS TO THE BANK OF

NORTH AMERICA.

Whereas, Congress, on the twenty-sixth day of May last,
did, from a conviction of the support which the finances of
the United States would receive from the establishment of a
national bank, approve a plan for such an institution, sub¬
mitted to their consideration by Robert Morris, Esq., and
now lodged among the archives of Congress, and did engage
to promote the same by the most effectual means ; and
whereas, the subscription thereto is now filled from an ex¬
pectation of a charter of incorporation from Congress, the
directors and president are chosen, and application hath been
made to Congress by the said president and directors for an
act of incorporation ; and whereas, the exigencies of the
United States render it indispensably necessary that such an
act be immediately passed.

Be it therefore ordained, and it is hereby ordained, by the
United States in Congress assembled, that those who are, and
those who shall become, subscribers to the said bank, be, and
forever after shall be, a corporation and body politic to all
intents and purposes, by the name and style of The Presi¬
dent, Directors, and Company of the Bank of North
America.

THE BANK OF NORTH AMERICA.

131

And be it further ordained, that the said corporation are
hereby declared and made able and capable in law, to have,
purchase, receive, possess, enjoy, and retain lands, rents,
tenements, hereditaments, goods, chattels, and effects, of what
kind, nature, or quality soever, to the amount of ten millions
of Spanish silver milled dollars, and no more; and also to
sell, grant, demise, alien, or dispose of the same lands, rents,
tenements, hereditaments, goods, chattels, and effects.

And be it further ordained, that the said corporation be,
and shall be, forever hereafter, able and capable, in law, to
sue and be sued, plead and be impleaded, answer and be
answered unto, defend and be defended, in courts of record,
or any other place whatsoever, and to do and execute all and
singular other matters and things that to them shall or may
appertain to do.

And be it further ordained, that for the well governing of
the said corporation, and the ordering of their affairs, they
shall have such officers as they shall hereafter direct or
appoint, provided, nevertheless, that twelve directors, one of
whom shall be the president of the corporation, be of the
number of their officers.

And be it further ordained, that Thomas Willing be the
present president, and the said Thomas Willing and Thomas
Fitzsimons, John Maxwell Nesbitt, James Wilson, Henry
Hill, Samuel Osgood, Cadwalader Morris, Andrew Cald¬
well, Samuel Inglis, Samuel Meredith, William Bingham,
and Timothy Matlack be the present directors of the said
corporation, and shall so continue until another president
and other directors shall be chosen according to the laws
and regulations of the said corporation.

And be it further ordained, that the president and direc¬
tors of the said corporation shall be capable of exercising
such power for the well governing and ordering of the affairs

132

A HISTORY OF

of the said corporation, and of holding such occasional meet¬
ings for that purpose, as shall be described, fixed, and deter¬
mined by the laws, regulations, and ordinances of the said
corporation.

And he it further ordained, that said corporation may
make, ordain, establish, and put in execution such laws,
ordinances, and regulations as shall seem necessary and con¬
venient. to the government of the said corporation. Provided
always, that nothing hereinbefore contained shall be con¬
strued to authorize the said corporation to exercise any
powers in any of the United States repugnant to the laws or
constitution of such State.

And be it further ordained, that the said corporation shall
have full power and authority to make, have, and use a
common seal, with such device and inscription as they think
proper, and the same to break, alter, and renew at their
pleasure.

And be it further ordained, that this ordinance shall be
construed and taken most favorably and beneficially for the
said corporation.

THE BANK OF NORTH AMERICA.

1

oo

oo

IV.

ALPHABETICAL LIST OF THE FIRST SUBSCRIBERS TO THE BANK
OF NORTH AMERICA, TRANSCRIBED FROM THE ORIGINAL
SUBSCRIPTION-PAPER, 1781, 1782, 1783.

This subscription was for 1000 shares at 400 dollars each.

Appleton, Nathaniel ... 1

Barge, Jacob . 1

Barclay, John . 2

Bingham, Wm . 95

Bingham, Ann . 5

Bingham, Mary . 7

Bridges, Bob’t . 1

Brown, Mary . 1

Bell, Daniel . 1

Bradford, John . 1

Breck, Sam’l . 2

Baker, John . 3

Benezet, Philip . 1

Baciie, Bichard . 10

Beavan, Wm . 2

Brown, John . 18

Bartram, Ann . 2

Bell, Wm . 5

CONYNGHAM, D. IlAYFIELD . 1

Clymer, George . 7

Carson, Joseph . 1

Caldwell, Andw. & James . 4

Crawford, James .... 1

Craig, James, Junf . 1

Codman & Smith . 1

1

Carter, John ....

. . 98

Coxe, Tench ....

. . 4

Cox, James .

. . 8

Caldwell, Jane . . .

. . 1

Dunlap, John ....

. . 2

Donnaldson, John . .

. . 3

Davidson, John . . .

. . 1

Denning, Wm .

. . 5

Davis, Caleb ....

. . 1

Decatur, Stephen . .

. . 3

Dickinson, Philemon .

. . 13

Dyer, Sarah ....

. . 1

Delaplaine, Sam!. . .

. . 1

Eddy, George ....

. . 1

Emlen, George . . .

. . 2

Fitzsimons, Tiios. . .

. . 2

Fuller, Benj .

. . 10

Fromberger, John . .

. . 1

Franklin, John . . .

. . 12

Francis, Tench . . .

. . 4

Fox, Jos. M .

. . 1

Gurney, Francis . . .

. . 1

Haynes, Geo .

. . 2

Hill, Henry ....

. . 5

TIolker, John ....

. . 5

134

A

HISTORY OF

Hillegas, Michael .

. 1

Nichols, Francis . .

Hatch, Crowell . .

. 2

Nathan, Simon . .

Hockley, W”. B. . .

hr

i

Osgood, Sam’l . . .

Hazlehurst, Isaac .

. 3

Ozeas, Peter . . .

Hewes, Josiaii . .

2

Otis, Samuel . . .

Hare, Eob’t . . .

. 1

Pettit, Charles . .

IIopkinson, Francis

. 5

Penrose, Thos. . .

Inglis, Samuel, & Co.

. 4

Paca, Wm .

Irvin, Tiios. . . .

1

Peters, Rich3. . . .

Jones, John Paul

. 25

Parker, Daniel . .

Jarvis & Bussell

. 5

Parsons, Theophilus

Kidd, John ....

. 4

Powel, Sam’l . . .

Low, Nicholas . .

. 1

Poelnitz, Baron . .

Lardner, John . .

. 1

Price, Edw4. . . .

Langdon, John . .

. 5

Pringle, John . . .

Luzerne, Chevalier De La

. 1

Ross, John ....

Lieper, Thomas . .

. 2

Russell, Thos. . .

Lowell, John . . .

1

Robertson, Alex1'. .

Lewis, Mordecai . .

. 5

Rush, Benj. . . .

Mease, John . . .

1

Read, Jas .

Morris, Robert . .

. 98

Siiiel, Hugh . . .

Meade, George . .

. 3

Semple, W". . . .

Mitchell, John . .

2

Swanwick, John . .

Mitchell, Henry

. 2

Smith, Charles . .

McClenachan, Blair

. 11

Salomon, Haym . .

Morris, Cadwalader

1

Shoemaker, Thomas

Meredith, Sam’l . .

. 7

Shippen, Edw’4. . .

Mease & Caldwell .

. 2

Stuart, Jas. ...

Morris, Gouverneur

. 1

Smith, Wm .

Moses, Isaac . . .

1

Simpson, George . .

Moore, Philip . . .

1

Strettell, Frances .

Morris, Hannah . .

. 1

Stamper, John . .

Milligan, Ja8. . . .

. 3

Stewart and Totten

Marbois, Barbe de .

1

S wyler, Jacob L.

McMurtrie, Wm. . .

. 12

Tilghman, Tench . .

Morris, Wra. . . .

1

Tilgiiman, Jas. . .

Matlacic, Timothy .

. 1

Turnbull, Wm. . .

Nesbitt, John M.

. 1

Timmons, Dean . .

Nixon, John . . .

. 5

Tracy, Natii1. . . .

THE BANK OF NORTH AMERICA.

O

I 60

Totten, Hob’t . 1

Vanbibber, Ab. & Jn°. . . . 2

Vaughan, John . 4

Wn .cocks, John . 2

Wilson, James . 5

Wilcox, Mark . 1

Willing, Thomas . 11

Willing, Charles .... G

Willing, Abby . 2

White, Wm . 1

Wendal, Oliver . 1

Wetmore, Wm . 1

Wadsworth, Jeremiah . .104

Winey, Jacob . 3

Whiteside, Peter .... 5

Wilson, John . 2

WlCKERSIIAM, AMOS .... 1

1000

Of the above shares, the United States at first paid for
G33, and the Bank, by special bargain, lent them the whole
Money immediately, hut, it not being convenient for the
Financier to repay the money when wanted by the Bank, He
reconveyed the said Shares, and they Avere bought up by
some of the foregoing Subscribers.

N.B. — The first Subscription Avas thus completed on the
25th of July, 1783.

Thos. Willing, President.

136

A HISTORY OF

V.

SECOND SUBSCRIPTION TO THE NATIONAL BANK, 1784.

At a general election, held at the bank January 12, 1784,
a proposal was laid before the stockholders for opening a
new subscription to enlarge the capital stock of the bank,
upon which it was unanimously resolved

That a subscription shall be opened at the bank on the
first day of February next, and continue until one thousand
additional shares shall be subscribed.

That the price of each new share shall be five hundred
dollars, and the amount of such shares shall be added to the
present capital of the bank, so as to form one common stock,
which shall be the property of the several stockholders, in
proportion to the number of their respective shares, and
without regard to the sum paid for such shares at the time
of the subscription, and that in every case the money shall
be paid at the time of subscribing.

Wherefore, we, the subscribers, having read the above
resolution for increasing the capital stock of the bank, ap¬
proving, confirming, and hereby agreeing to the same, we
sign our names, and opposite thereto affix the number of
shares for which we subscribe, having made and further
agreeing to make payment according to the conditions above
specified.

At the above general election the stockholders assigned to

THE BANK OF NORTH AMERICA .

137

Thomas Willing, President . Four shares.

Jacob Barge . One share.

J. Swanwick, on behalf of Ilis Excellency P. J. Van

Berckel . Fifty shares.

J. Swanwick: . Thirty shares.

Willing, Morris, & Swanwick . Seventy shares.

Be Heyder, Veydt & Co., by Haym Salomon . . Ten shares.

Tench Francis, on behalf of John Kidd .... Three shares.

Willing, Morris, & Swanwick . Nineteen shares.

Clement Biddle & Co . Three shares.

Thomas Lowrey . One share.

Eleazer Oswald . One share.

Abram Maricoe . Four shares.

William Vaughan, by John Vaughan . One share.

John Darby, by D . Four shares.

Benjamin Fuller . Ten shares.

Tench Francis, on behalf of William Bull, Esq. . One share.

Richard Mason . Two shares.

Miller <fc Abercrombie . One share.

Spencer & Marache . Two shares.

Henry Pratt . One share.

John Ross, for Barbe de Marbois, Esq . Six shares.

John Ross . Ninety-four shares.

James Hood . Two shares.

Nixon & Clarkson . One share.

Samuel Coates . One share.

Nathan Sellers . One share.

David Sellers . One share.

W. Barton & Co . One share.

Cadwalader Morris, for Hannah Morris . . . One share.

Cadwalader Morris, for Hannah Morris . . . One share.

Samuel Jackson . One share.

Nathan Falconer . Two shares.

Cornelius Barnes . Two shares.

William Nichols . Two shares.

Samuel Powel . Twelve shares.

Peter Loiira . . . One share.

George Meade . Five shares.

Samuel Powel . Two shares.

138

A HISTORY OF

George Meade, for Frances and Anna Maria Clif¬
ton . One share.

George Meade, for Charlotte Prettejohn . . . One share.

George Meade, for Henrietta Constantia Meade . Three shares.

Joseph Harrison . Two shares.

Robert Morris, by James Rees . Six shares.

Doctor John Baker . One share.

Isaac Yanbibber, by Thomas Willing .... One share.

Reed & Forde . One share.

William Constable, for Samuel Fleming . . . Fifty shares.

John Field . Two shares.

Thomas Penrose . Two shares.

William Ruibel . Two shares.

Lamb & Ciieckley . Two shares.

John Wilcocks . Two shares.

Andrew Doz, for Abraham Wayne . One share.

John Brown & Sons . One share.

Conyngham, Nesbitt & Co., for D. II. Conyngham One share.

Conyngiiam, Nesbitt & Co., for J. M. Nesbitt . . One share.

Kuhn & Risberg . Two shares.

William Tilton . Two shares.

Mordecai Lewis & Co . Two shares.

Evan Evans, for Mary Evans . One share.

John Brown . Twenty-two shan

IIaym Salomon . Two shares.

William B. Hockley, for the six minor children of

my deceased sister . Three shares.

George Eddy . Two shares.

William Constable . Four shares.

John and Robert Morton . Two shares.

George Bickiiam . One share.

Benjamin Mason . One share.

John Good . Four shares.

John Donnaldson, for Edward Milnor .... Two shares.
John Donnaldson, for Mary Donnaldson . . . One share.

John and William Montgomery . Two shares.

William B. Hockley . Two shares.

Israel Wiielen . One share.

Ezra Jones . One share.

THE BANK OF NORTH AMERICA. 139

Thomas Saltar . Four shares.

Leonard Jacoby . One share.

Charles Syno . One share.

John Barclay . One share.

Isaac and Samuel Lewis Wharton . Six shares.

John Spariiawk . Four shares.

George Latimer . One share.

Pelatiaii Webster . Two shares.

Elliston and John Perot . Six shares.

Abram Maricoe . Three shares.

Abram Wilt, Jr . One share.

Henry Hill . Th ree shares.

Thomas Willing, for the Chevalier De La Luzerne One share.

Willing, Morris, & Swanwick, for Miss Abby

Willing . Three shares.

Jacob L. Swyler, for Jacob Winey . Five shares.

Thomas Stritch . Two shares.

James B. Nickolls . Two shares.

William Wister . Two shares.

Thomas Willing, for Mrs. Mary Bingham . . . Three shares.

Andrew Tybout . One share.

Charles Cooper . One share.

140

A HISTORY OF

VI.

SECOND SUBSCRIPTION TO THE NATIONAL BANK CONTINUED AND

EXTENDED, 1784.

Second subscription to the capital stock of the national
bank continued and extended this 1st day of March, 1784,
at a general meeting of the stockholders, by whom it was
unanimously agreed

That the new subscription shall be extended to the number
of four thousand shares, which shall be added to the capital
stock of the bank, at four hundred dollars for each share,
making in the whole live thousand shares, including both the
old and new stock.

That the old, or first stockholders, shall divide the profits
of the bank to this day.

That those who have purchased old stock since the last
dividend at an advanced price, upon assurance given that
the price of the new stock would be held at five hundred
dollars, shall have the sum given in advance repaid to them,
together with interest at the rate of six per cent, per annum
on the whole purchase-money from the day of the transfer,
instead of the dividend.

That those who have already subscribed for new stock at
live hundred dollars each share shall be repaid an hundred
dollars each share, together with interest at the rate of six
per cent, per annum on their whole subscription from the
time of payment to this day, after which they shall receive
dividends in common with all the subscribers, old and new.

THE BANK OF NORTH AMERICA.

141

v a

dividend from the day of such subscription respectively.

Wherefore, we, the subscribers, having read the above
resolutions, approving, confirming, and hereby agreeing to
the same, we sign onr names, and opposite thereto affix the
number of shares for which we subscribe, having made pay¬
ment according to the above conditions.

Thomas Willing (additional) . One share.

Sampson Fleming (additional) . Thirteen shares.

Mordecai Lewis, for Luke Morris . Ten shares.

Josiaii Hewes . Two shares.

Samuel Powel (additional) . Four shares.

Samuel Powel (additional) . One share.

Andrew Doz, for Abraham Wayne (additional) . One share.

Charles White . One share.

Josiaii Coates . One share.

Robert Morris (additional) . Two shares.

Robert Morris, for Tench Tilghman & Co. . . Ten shares.

Elliston & John Perot (additional) . Two shares.

John Sparhawk (additional) . One share.

Thomas Willing, for Abby Willing (additional) . One share.

Thomas Lowrey (additional) . One share.

Moses Cohen . Two shares.

Jacob Barge (additional) . Three shares.

Mordecai Lewis & Co. (additional) . One share.

Wager & Habacher (additional) . Two shares.

Philemon Dickinson . Twelve shares.

Levi Hollingsworth . Two shares.

W. Alexander & Comp’y . Ten shares.

Thomas Saltar (additional) . Four shares.

Jacob Downing . One share.

Spencer & Marache (additional) . One share.

Isaac and Samuel Lewis Wharton (additional) . Four shares.

Cornelius Barnes (additional) . One share.

Joseph Pennell . Three shares.

William Constable . Four shares.

IS

142

A HISTORY OF

John Jones .

James Sloan .

Cornelius Barnes .

John Hood (additional) .

Peter Lohra (additional) .

Richard Mason (additional) .

Eleazer Oswald .

Thomas Franklin .

Barbe i>e Marbois .

William Nichols (additional) .

Benjamin Gibbs .

Caspar Guyer .

Joseph Bullock .

Jehu Eldredge .

Conrad Wister .

Benjamin Davis, Jr .

Benjamin Davis, Jr .

Benjamin Fuller .

John Brown .

Thomas Leaming, Jr., for Thomas Leaming, of

Cape May .

Jacob Iveeiimle .

Benjamin Fuller .

Matthias Keeley .

Robert Correy .

David Sellers .

Nathan Sellers .

John Vaughan (additional), J. Darby .

Benjamin Davis, Jr., for Thomas West . . .

Casper Singer & Son .

William B. Hockley, for the six minor children of

my deceased sister . , .

Townsend and John White .

William B. Hockley .

Fred’k IIeisz & Co .

Luke Keating . • .

Cornelius Barnes .

James Cox .

William Sykes .

Twelve shares.
One share.

One share.

One share.

One share.

One share.

One share.

Two shares.
Two shares.
One share.

Two shares.
One share.

One share.

One share.

One share.

One share.

One share.
Three shares.
Six shares.

One share.

One share.
Seven shares.
One share.

One share.

One share.

One share.

One share.

Two shares.
One share.

One share.

One share.

One share.

Two shares.
Two shares.
Two shares.
Two shares.
Ten shares.

THE BANK OF NORTH AMERICA.

143

IIay.m Salomon, for Joshua Maddox Wallace,
by order of William Bradford, Esq. . .

John and James Oldden .

Josiah W. and William Gibbs, live of these re¬
turned cancelled June 4 .

Samuel Jackson .

Jacob Downing .

John Ming & Co .

Peter Bedford . .- .

William and John Sitgreaves .

Samuel Gerrisii, for J. Langdon, Esq .

Samuel Gerrisii, for Joshua Bracket, Esq. . .

James Stuart .

Ishmael Owens .

George Logan .

Peter Knight .

John Swanwick, on behalf of His Excellency P. J.

Van Berckel .

John Swanwick .

Spencer & Maraciie .

Joseph Swift .

William and John Sproat .

Peter Thomson .

Conrad Gerhard .

Peter W. Gallaudet .

Caspar W. Haines .

Benjamin W. Morris, for Sarah Wistar . . .

Edward Burd .

Coxe & Frazier .

George Fox .

Leonard Dorsey .

John Steinmetz .

Solomon Lyons .

Reed & Forde .

William McMurtrie .

Joseph Harrison, for the Rev. Dr. White . . .

George Latimer, for James Booth. Esq. . . .

John Hood .

Adam Zantzinger .

Four shares.

Two shares.

Five shares.

Two shares.

One share.

One share.

One share.

Six shares.

Five shares.

One share.

One share.

One share.
Three shares.
Four shares.

Thirteen shares.
Eight shares.
Three shares.
Five shares.

One share.

One share.

Two shares.

Two shares.

Two shares.
Three shares.
Three shares.
Two shares.
Fourteen shares.
Two shares.
Twenty shares.
One share.

Three shares.
Twenty shares.
One share.

One share.

Five shares.

Five shares.

144

A HISTORY OF

Robert Bridges .

Richard Adams .

Benjamin (4. Eyre .

James Craig .

John and James Oldden .

James C. Fisher .

Samuel Howell .

William Jones .

William Ball .

George Fox .

John Steinmetz .

Joseph Cauffman .

William Ruibel .

William Constable, for William Edgar . . .

Yardon, Giese & Co .

Jacob Barge, for Elizabeth Gross .

Tench Francis, for Robert Erwin .

Henry Yoorhees .

John Kidd .

J. Swanwick, on behalf of Tench Tilgiiman & Co.

Edward Duffield .

Thomas Fitzsimons, for Anna Maria Clifton
Nathaniel Falconer, for General Mifflin . .

Nathaniel Falconer, for Rebecca Morris . .

Pragers, Liebaert & Co .

Thomas J’enrose, for Thomas Penrose, Jr. . .

Archibald Gamble, for Jane Cannon . . . .

Henry Hill, for James Jacks, Esq., of Lancaster .

Benjamin Fuller .

Donnaldson & Coxe .

Ann Powell, by John Wilson .

Tench Francis, for the Honorable Arthur Lee

John Jones, for Thomas Jones .

Nathaniel Falconer, for Mary Bicicley . . .

Collins & Truxtun .

Abram Markoe .

Israel Morris, Jr., for Luke Morris .

John Angus .

Benjamin Fuller .

Two shares.

One share.

One share.

Five shares.

Two shares.

Two shares.
Twenty-seven shares.
One share.

Two shares.

One share.

Ten shares.

Two shares.

Three shares.
Fifty-five shares.
Five shares.

One share.

Two shares.

One share.

One share.

Ten shares.

One share.

One share.

Eleven shares.

One share.

Ten shares.

One share.

One share.

One share.

Five shares.

Twenty shares.

One share.

Fourteen shares.
Seven shares.

Three shares.

Two shares.

Four shares.

Four shares.

Four shares.

Four shares.

THE BANK OF NORTH AMERICA.

James Hunter .

David Kennedy .

John F. Mifflin .

John Nixon, Executors to estate of M. Rogers,
J. M. Nesbitt, j late of this city, deceased .

Magnus Miller .

Frederick Greiner .

Tench Francis, for Honorable Arthur Lee . . .

Michael IIillegas, for Captain Edward North .
Jacob Laverswyler, for Catharine Laverswyler

Thomas Parke, for Hannah Lloyd .

Tench Francis, for the Honorable Arthur Lee
Peter Whiteside, for Wallace, Johnson & Muir.

William Bell .

John Brown & Sons, for Alexander Porter
John Brown & Sons, for Alexander Porter
John Wharton, as one of the executors of the Hon¬
orable Thomas Wharton, Esq., deceased, on
behalf of the four minor children of his de¬
ceased brother by his first wife, Susannah, viz. :
Lloyd, Kearney, Moore, and Sarah Whar¬
ton .

George Sciiaffner .

Nathaniel Falconer, for General Thomas Mifflin

Edward Burd .

Tench Francis, for the Honorable Arthur Lee

Benjamin Ciiew .

Michael Shubart, for the German Society . .

Jacob Laverwsyler, for Jacob Winey . . . .

Benjamin Fuller, as one of the executors of William
West, deceased, on behalf of the five minor chil¬
dren of said William West, viz. : William
Hodge, James, Benjamin Fuller, Annie,
and Helen West, three shares each, making .
Biciiard Footman, for the estate of Peter Car-

mick, deceased .

Benjamin Fuller, for David Hayfield Conyng-

ham .

Catharine Lardner, by William Laiidner . .

One share.

One share.

One share.

Three shares.
Three shares.
One share.

One share.
Two shares.
One share.
Two shares.
Two shares.
Two shares.
Fifteen shares.
Twelve shares.
One share.

Five shares.
Five shares.
Two shares.
Two shares.
One share.
Three shares,
Three shares
Four shares.

Fifteen shares.

One share.

One share.

One share.

146

A HISTORY OF

John Oldden, for Samuel Oldden .

T. F., for Samson Fleming, by order of Thomas

Fitzsimons .

Arthur Lee .

Matthias Harrison, for Thomas Mifflin, Esq. .

Isaac Warner .

Thomas Harrison .

Thomas Harrison .

Constable, Rucker & Co., by Garrett Cottringer

G. Fowler .

Caspar Guyer .

Mary Tucker, by William Smith .

William Foot, by William Smith, for the use of two
minor daughters of the deceased Mr. Thomas

A. Burch .

Thomas, Samuel, and Miers Fisher .

Thomas Harrison .

Alexander Stuart .

William B. Hockley . . • .

William Ruibel .

John Kidd .

Benjamin Fuller, for Margaret Stocker . .

Benjamin Fuller, for Margaret Stocker, Jr. .

William B. Hockley .

Nathan Sellers .

David Sellers .

Richard Baciie, for William Temple Franklin,

Esq .

J. Swanwick, on behalf of Mr. Arnoud David Van

Lennep .

Samuel Smith .

John Gray, for Sarah Fitzsimons (widow) . .

John Kidd, for Mary Foulke .

John Lukens . .

John Jay .

OuSRAY PAINNIERE .

Jeremiah Warder, Parker & Co .

Garrett Cottrinoer, on behalf of George C.
Antiion .

One share.

Two shares.
One share.

One share.

Six shares.
Two shares.
One share.
Twenty shares.
Five shares.
Two shares.
Four shares.

Four shares.
Ten shares.
One share.
Eight shares.
Two shares.
One share.

Two shares.
Eight shares.
Eight shares.
One share.

One share.

One share.

Eleven shares.

Ten shares.
Twelve shares.
One share.

Two shares.
Four shares.
Oue share.

Two shares.
Four shares.

Six shares.

THE BANK OF NORTH AMERICA.

1-17

John Ross, for Mrs. Dorcas Montgomery
James Read, for George Read ....
Thomas Fltzsimons, for Matthias Ooster
Thomas Fitzsimons, for Hendrick How
Curtis Clay, for Mrs. Ann Clay . . .

J. Swannvick, for G. K. Van Hogdenderp
Mordecai Lewis, for Jan Deicnatel . .

Mordecai Lewis, for Herman Angelkot

One share.

Two shares.
Twenty-five shares.
Twenty shares.

One share.

Ten shares.

Three shares.

Two shares.

148

A HISTORY OF

VII.

CORRESPONDENCE WITH THE COMPTROLLER OF THE CURRENCY AS TO

THE RETENTION BY THE BANK OF THE NAME OF THE “ BANK OF
NORTH AMERICA” ON BECOMING A NATIONAL BANK.

Thomas Smith, Esq., President, to Hon. Hng’li McCul¬
loch, Comptroller :

Philadelphia, October 28, 1864.

Proposing that the Bank of North America should become a national bank,
and suggesting that it should retain the title of the “ Bank of North America,”
without the usual prefix of “ National.”

Hon. Hugh McCulloch, Comptroller, to Thomas Smith,
Esq., President :

Washington, October 29, 1S64.

Dear Sir, — Your favor of the 28tli inst. is received. Such has been the
history and such the relations of the Bank of North America to the General
Government, that it seems to be eminently proper that in its reorganization
and rejuvenation under the National Currency Act, it should assume as its title
“ The National Bank of North America.” Every State bank hitherto changed
into a national association has taken, in connection with its former name, the
word “ National,” and I should regret it if the oldest and most loyal of all of
them should be unwilling to indicate by its title its relations to the national
banking system of the National Government.

In order to make the change, you must obtain the consent of the owners of
two-thirds of the capital stock of your bank, and, if you advise it, I do not
believe that a single one of them will hesitate to assent to the introduction of
the word “ National” into the title. Please let me hear from you on this point.

I do not now say that I shall decline sanctioning the reorganization of your
bank under its present title alone. If I do it, it will be against my own judg¬
ment and with extreme reluctance.

THE BANK OF NORTH AMERICA.

149

There was, I think, well-founded objection to the “ numeral system” of
Mr. Chase, but of the 5G1 banks organized under the national system not one
has objected to the word “ National” as a part of its title, and I do not believe
that, upon reflection, you will.

Some parts of your letter please me so much that I would publish them if I
felt at liberty to do so.

I forward you a half dozen sets of Forms, etc.

Very truly yours,

H. McCulloch, Comptroller.

Thomas Smith, Esq., President Bank of North America, Philadelphia.

Thomas Smith, Esq., President, to Hugh McCulloch, Esq.,
Comptroller :

Philadelphia, November 1, 1864.
Hon. Hugh McCulloch, Comptroller of the Currency.

Dear Sir, — Your valued favor of the 29th is at hand. Wishing to avoid
the use of your valuable time in a matter of so little moment as the addition
of the word £: National” in the name of this bank, I am compelled to do so
because there is so much feeling about any change of name with the stock¬
holders and directors, arising principally from the fact that its present is its
old national name given to it by Congress in 1781, retained by it, after much
violent opposition, in confirmatory charters had from Delaware, Massachusetts,
and Pennsylvania, the same political heresy of State rights being then, as now,
rampant.

There is no similarity between this and any other bank, either State or
National.

First. We hold the national charter, December 31, 1781, which has never
been abandoned or relinquished, but, in consequence of the partisan opposition
to the bank, this charter was confirmed by the three States in which its busi¬
ness was chiefly done. No new charter was given or made. It was simply
confirmatory of the charter made by the United States, which confirmatory
charters by this State have been renewed (being limited in duration) as they
expired. The original charter is perpetual.

The great merit of the corporation and pride has always been its national
character. We have it in brass in the building and printed on the notes. In
July, 1862, we passed, and published in the papers, a resolution, a copy of
which I inclose. We loaned all we had to the Gfovernment when they wanted
it, and the timid said it was imprudent to do so, and we have and hold two and

19

150

A HISTORY OF

a half times the amount of the capital in United States securities now, and in¬
tend to do so. The national banks are generally organized to benefit the stock¬
holders, and for that purpose only. This bank was created avowedly to aid the
United States. It fulfilled its mission, and then went on prosperously, filled with
the pride of that mission.

These are some of the reasons for asking permission to retain our national
name of “ The Bank of North America.” The matter has been thoroughly
canvassed by the directors, and I will frankly state that I heartily agree with
them in pressing the request. With a personal interview, and the documents
in our possession, I feel you would say we were right. At the same time we
shall do nothing, however small, to detract from the strength of the nation in
this her struggle for existence. And we believe the national bank system to
be one very great element of success and strength. Should you determine
that we cannot change without an alteration of name, please inform me in rela¬
tion to it, our arrangements all being made for the old name. In the mean
time, I inclose you specimens of the issue of the notes of the bank, if you are
at all curious in such matters, the issues of the Revolution, the war with Great
Britain, and the Rebellion. They are genuine, and good for redemption at any
time.

Awaiting your leisure to hear from you, I am,

Respectfully, your obedient servant,

Thomas Smith, President.

The same to the same :

Philadelphia, November 11, 1S64.
II. McCulloch, Esq., Comptroller of the Currency.

Bear Sir, — Your favor of the 4th was duly received. I should have felt
much relieved by something to warrant the belief that you would sanction the
old name. The meeting of stockholders is on Monday next, and it is by no
means certain that the requisite number of two-thirds can be obtained at all.
The election has demonstrated that Uncle Sam can take care of himself now,
and there is, therefore, no necessity for any little moral support, besides there
are several Banks of North America, and after a time there may be the same
number of National Banks of North America.

I can, if you desire, send you a commendation from the other banks for our
old name. The notes I sent you arc to be retained ; we have other specimens
of the same kind.

Respectfully, your obedient servant,

Thomas Smith, President.

THE BANK OF NORTH AMERICA.

151

The same to the same :

Philadelphia, November lf>, ]8G4.

Hon. H. McCulloch, Comptroller, etc.

Dear Sir, — The stockholders of‘ this bank have voted authority to its
directors to change from State to National. Our desire is to retain its present
name in the organization certificate, —

“The Bank of North America.”

Will you be pleased to inform me if this will meet your approval in order to
avoid the trouble and vexation attending a failure ? [Referring to my previous
letters on this matter and awaiting your reply,

I am your obedient servant,

Thomas Smith, President.

We are progressing slowly with obtaining the consent of two-thirds of the
stockholders.

Iii consequence of the foregoing correspondence, and at
the request of the presidents of most of the Philadelphia
banks, the Comptroller of the Currency at length consented
to allow “The Bank of North America” to retain its original
title, without the prefix “ National,” on becoming a national
bank. — See ante, page 118.

152

A HISTORY OF

vnr.

DIVIDENDS PAID BY THE BANK OF NORTH AMERICA FROM 1782 TO THE

PRESENT TIME.

1782 .

8 1

per cent.

1809 .

1783 .

14*

CC

1810 .

1784 .

13}

cc

1811 .

1785 .

6

CC

1812 .

1786 .

6

Cl

1813 .

1787 .

6

cc

1814 .

1788 .

6}

u

1815 .

1789 .

7

cc

1816 .

1790 .

7

cc

1817 .

1791 .

13}

CC

1818 .

1792 .

12}

iC

1819 .

1793 .

12

cc

1820 .

1794 .

12

u

1821 .

1795 .

12

cc

1822 .

1796 .

12

cc

1823 .

1797 .

12

cc

1824 .

1798 .

12

ic

1825 .

1799 .

11

u

1826 .

1800 .

10

u

1827 .

1801 .

10

cc

1828 .

1802 .

10

cc

1829 .

1803 .

9

K

1830 .

1804 .

9

cc

1831 .

1805 .

9

cc

1832 .

1806 .

9

cc

1833 .

1807 .

9

cc

1834 .

1808 .

9

cc

1835 . .

9

per i

9}

cc

9

cc

9

cc

10

cc

10

cc

10

cc

10

cc

10

cc

10

cc

9

cc

6}

cc

6

cc

6

cc

6

cc

6

cc

6

cc

6

cc

4

cc

5

cc

5

(C

5

cc

5

cc

5

cc

6

c c

6

cc

7

cc

THE BANK OF NORTH AMERICA.

153

1836 . . .

. . . 7

per cent.

1859 .

12 per cent.

1837 . . .

. . . 6

CC

1860 .

9

CC

1838 . . .

. . . 6

CC

1861 .

6

cc

1839 . . .

. . . 3

cc

1862 .

10

cc

1840 . . .

... 9

cc

1863 .

12

cc

1841 . . .

. . .

cc

1864 .

12

cc

1842 . . .

One cent.

1865 .

31

cc

1843 . . .

... 6

per cent.

1866 .

22 £

cc

1844 . . .

... 8

cc

1867 .

30

cc

1845 . . .

... 8

CC

1868 .

22 \

cc

1846 . . .

... 8

cc

1869 .

20

cc

1847 . . .

. . . 10

cc

1870 .

20

cc

1848 . . .

. . . 15

cc

1871 .

20

cc

1849 . . .

. . . 12

cc

1872 .

20

cc

1850 . . .

. . . 15

cc

1873 .

20

Cc

1851 . . .

. . . 15

cc

1874 .

20

cc

1852 . . .

. . . 15

cc

1875 .

20

cc

1853 . . .

. . . 15

cc

1876 .

20

cc

1854 . . .

. . . 15

cc

1877 .

16

cc

1855 . . .

. . . 15

cc

1878 .

16

cc

1856 . . .

. . . 15

cc

1879 .

16

cc

1857 . . .

. . . 11

cc

1880 .

16

cc

1858 . . .

. . . 10

cc

The amount to credit of surplus and profit and loss, January

1, 1860

was . . .

*

§288

361.81

There was to credit of the same accounts on January 1, 1881

1,100,000.00

Showing a gain

of . . .

§811,638.19

During the same period the]

•e have been paid to the stock-

holders

dividends amounting to

O

3,700,000.00

Showing total profits, being over 451 per cent.

§4,511,638.19

I

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